If We Consider the Reality That Each Worker Has Different

question 62

Multiple Choice

If we consider the reality that each worker has different skills, then the production possibilities frontier:

• A) should display a constant opportunity cost of a good, as more of that good is produced.
• B) should display a decreasing opportunity cost of a good, as more of that good is produced.
• C) should display an increasing opportunity cost of a good as more of that good is produced.
• D) cannot be drawn, as too many variables would need to be taken into consideration.

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Definitions:

Noncumulative

A term often used in dividends policy, indicating that if a dividend is not paid out, it doesn't accumulate for future payment.

U.S. GAAP

United States Generally Accepted Accounting Principles, which constitute the framework of guidelines for financial accounting used in the US.

Interest Expense

The charge for borrowing money typically calculated as a rate of the principal amount annually.

Net Operating Losses

A situation where a company's operating expenses exceed its revenues, which can have tax implications and affect future earnings reports.