Increases in Resources or Improvements in Technology Will Tend to Cause

question 81

Multiple Choice

Increases in resources or improvements in technology will tend to cause a society's production possibilities curve to:

• A) shift inward to the left.
• B) shift outward to the right.
• C) remain unchanged.
• D) become vertical.

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Definitions:

Liquidity

The ability of an entity to quickly convert its assets into cash or to pay off its current liabilities.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects money owed from its customers over a period.

Average Collection Period

The average amount of time that it takes for a business to receive payments owed by its clients in terms of receivables.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.