If an Economy Is Producing a Level of Output That

question 64

Multiple Choice

If an economy is producing a level of output that is on its production possibility frontier,the economy has:

• A)idle resources.
• B)idle resources but is using resources efficiently.
• C)no idle resources but is using resources inefficiently.
• D)no idle resources and is using resources efficiently.

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Definitions:

Retail Inventory Method

A method of estimating inventory cost that is based on the relationship of cost to retail price.

Cost To Retail Ratio

Cost To Retail Ratio is a method used to estimate the inventory value by comparing the cost of goods available for sale to the retail price of the goods.

Goods Sold

Refers to merchandise or products that have been sold by a business.

Earliest Costs

Refers to the initial expenses or purchase prices of inventory items, typically considered for cost calculation in accounting methods like LIFO (Last-In, First-Out).