Use the Following to Answer Question(s)

question 126

Multiple Choice

Use the following to answer question(s) :
Exhibit: Sugar and Freight Trains

-(Exhibit: Sugar and Freight Trains) The "bowed-out" shape of the production possibilities curve shown here demonstrates:

• A) that freight trains cost more than sugar.
• B) that sugar costs more than freight trains.
• C) that the opportunity cost of additional freight trains increases as the economy produces more and more of them.
• D) that the opportunity cost of additional freight trains decreases as the economy produces more and more of them.

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Definitions:

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Adjusting Entry

An accounting entry made into a ledger after the reporting period has ended, to record previously unrecorded revenues or expenses or to correct inaccurate entries.

Income Statement

An income statement is a financial document that shows a company’s revenues, expenses, and profits over a specific period, illustrating the profitability of the business.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and equity, at a specific point in time.