If a Production Possibilities Frontier Appears as a Downward Sloping

question 150

Multiple Choice

If a production possibilities frontier appears as a downward sloping straight line, which of the following occurs?

• A) increasing opportunity cost
• B) decreasing opportunity cost
• C) constant opportunity cost
• D) negative opportunity cost

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Definitions:

Goal Conflict

A situation where two or more goals are in opposition, making it difficult to achieve one without compromising the other.

Budget Slack

The intentional underestimation of revenues or overestimation of expenses within a budget to create a cushion for unexpected situations.

Employee Self-interests

Employee self-interests are the motivations and personal goals that drive the behaviour of individuals within an organization, which may or may not align with the company's objectives.

Cash Receipts

The collection of cash, typically by a business from its customers, for goods or services provided.