The Figure Above Shows the Production Possibilities Frontier for a Country

question 64

Multiple Choice

The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to

• A) decrease station wagon production by 3 million.
• B) decrease SUV production by 1 million.
• C) decrease SUV production by 3 million.
• D) decrease SUV production by 4 million.
• E) acquire more resources and/or more advanced technology.

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Definitions:

Tax Expense

The total amount of taxes owed by an individual or corporation as a result of taxable activities or income during a fiscal year.

Income Before Taxes

The total revenue of a company minus all expenses except for income tax expenses.

Current Ratio

The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business’s operating cycle if longer than a year.