If an Individual Asset Is Increased, Then

question 127

Multiple Choice

If an individual asset is increased, then

• A) there must be an equal decrease in a specific liability.
• B) there must be an equal decrease in equity.
• C) there must be an equal decrease in another asset.
• D) None of these answer choices are correct.

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Definitions:

Increasing Opportunity Costs

The concept that the cost of forgoing the next best alternative increases as resources become more specialized in production.

Guns And Butter

A term used to describe a country's decision to allocate its resources between defense and civilian goods.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs.

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources and technology.