Use the Following to Answer Questions 32-33

question 6

Multiple Choice

Use the following to answer questions 32-33:
Figure 15.7
-(Figure 15.7) Which of the following statements is (are) TRUE?

• A) At point A, the economy is producing an equal number of jets and drones.
• B) At point B, 3 units of capital and 7 units of labor are used to produce drones.
• C) At point B, the labor and capital inputs are efficiently allocated across the economy.
• D) Fewer jets are being produced at point D than at point A.

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Definitions:

Advance Rental Payments

Prepayments of rent, often required by landlords, accounted for before the period of use or occupancy.

Security Deposits

Funds held by a landlord as a financial protection against damage to property or unpaid rent by a tenant, to be returned at the end of a lease term under certain conditions.

Passive Activities

Economic activities in which the individual does not materially participate, often resulting in income or losses for tax purposes.

Passive Income

Income resulting from rental property, limited partnerships, or other enterprises in which a person is not actively involved.