-In the Figure Above, How Can the Economy Represented by the Production

question 147

Multiple Choice

-In the figure above, how can the economy represented by the production possibilities frontier move from point C to point F?

• A) Increase the available amount of resources.
• B) Increase the level of technology.
• C) Redistribute the existing resources to produce more apples and fewer oranges.
• D) First move to point B and then move to point F.

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Definitions:

Cash Cycle

The cash cycle is a period between the outlay of cash for the purchase of inventory and the receipt of cash from customer sales, measuring the efficiency of a company's cash management.

Accounts Payable Period

The time it takes for a company to pay off its suppliers after a purchase is made, typically measured in days.

Liberal Accounts Receivable Policy

A policy that involves offering lenient credit terms to customers, such as extended periods before payment is due, which can encourage sales but may increase the risk of bad debts.

Operating Cycle

The period it takes for a business to buy inventory, sell products, and collect cash from sales, reflecting the efficiency of a company’s operations.