The Bowed Shape of the Production Possibilities Frontier Can Be

question 115

Multiple Choice

The bowed shape of the production possibilities frontier can be explained by the fact that

• A)all resources are scarce.
• B)economic growth is always occurring.
• C)the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.
• D)the only way to get more of one good is to get less of the other.

---

Definitions:

Purchase Price

The amount paid or to be paid by the buyer to acquire a good, service, or asset.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from total revenue.

Costing Method

The technique or approach used by a business to determine the cost associated with a product or project.

Inventory Turnover

A ratio indicating how often a company sells and replaces its stock of goods within a certain period, reflecting the efficiency of inventory management.