The Fact That Individual Productive Resources Are NOT Equally Useful

question 206

Multiple Choice

The fact that individual productive resources are NOT equally useful in all activities

• A) implies that a production possibilities frontier will be bowed outward.
• B) implies that gain from specialization and trade is unlikely.
• C) follows from the law of demand.
• D) implies a linear production possibilities frontier.

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Definitions:

Selling Expenses

Costs associated with the marketing and distribution of a product, including advertising, sales staff salaries, and shipping costs.

Perpetual Inventory

An inventory management system that continuously tracks the quantity and value of inventory, updating records in real-time as transactions occur.

Credit Terms

The conditions under which credit is extended by a lender to a borrower, including repayment time frame and interest rate.

Credit Terms

The conditions under which a seller extends credit to a buyer, including the repayment period and any discount for early payment.