A PPF Bows Outward Because

question 358

Multiple Choice

A PPF bows outward because

• A) not all resources are equally productive in all activities.
• B) consumers prefer about equal amounts of the different goods.
• C) entrepreneurial talent is more abundant than human capital.
• D) resources are used inefficiently.

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Definitions:

Direct Write Off Method

A method of accounting for bad debts that involves charging unpaid invoices directly to expense when they are determined to be uncollectible.

Bad Debts Expense

An expense account to record accounts receivable that a company does not expect to collect.

Allowance for Doubtful Accounts

A contra-asset account designed to predict the value of receivables that are expected to be uncollectible.