If a Country Has a Bowed Out (Concave to the Origin)production

question 28

Multiple Choice

If a country has a bowed out (concave to the origin) production possibility frontier,then production is said to be subject to

• A)constant opportunity costs.
• B)decreasing opportunity costs.
• C)first increasing and then decreasing opportunity costs.
• D)increasing opportunity costs.

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Definitions:

Indirect Method

The indirect method is a way of calculating cash flows from operating activities in a cash flow statement by starting with net income and adjusting for changes in balance sheet items.

Wages Payable

A liability account representing the amount of wages owed to employees for work done that has not yet been paid.

Indirect Method

An approach to assemble the cash flow statement by adjusting net income for fluctuations in balance sheet accounts to determine the cash flow originating from operations.

Operating Activities

The component of cash flow statement that reflects the cash generated or used by the core business operations.