Generally, Opportunity Costs Increase and the Production Possibilities Frontier Bows

question 42

Multiple Choice

Generally, opportunity costs increase and the production possibilities frontier bows outward. Why?

• A) Unemployment is inevitable.
• B) Resources are not equally useful in all activities.
• C) Technology is slow to change.
• D) Labor is scarcer than capital.

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Definitions:

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to the accounts in the general ledger.

Transaction Recording Process

The methodical process of recording financial transactions in the books of accounts to ensure accurate financial reporting.

Journal

A chronological record of all transactions made by a company, used as the primary source of information for the financial statements.

Ledger

A comprehensive collection of a company's accounts where transactions are recorded, typically categorized into assets, liabilities, equity, revenues, and expenses.