A Point on a Production Possibilities Curve Indicates

question 322

Multiple Choice

A point on a production possibilities curve indicates

• A) resources are not being used efficiently.
• B) resources are being used efficiently.
• C) opportunity costs are constant.
• D) an output combination that can be attained only if society gets more resources or there is technological change.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowing funds; this expense is reported on the income statement.

Stated Interest Rate

The nominal interest rate stated on a financial instrument, such as a loan or bond, without adjustment for compounding or market conditions.

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting accumulated depreciation and impairment losses.

Market Rate of Interest

The prevailing rate of interest for securities or loans in the market, determined by supply and demand and influenced by the general economic conditions.