Figure 3-7 -In Figure 3-7, If We Compare a Move from Point

question 164

Multiple Choice

Figure 3-7
-In Figure 3-7, if we compare a move from point B to C with a move from point A to point B, we can see that

• A)the opportunity cost of the move from B to C is higher than the opportunity cost of a move from A to B.
• B)the opportunity cost of the move from B to C is lower than the opportunity cost of a move from A to B.
• C)the opportunity cost of the move from B to C is equal to the opportunity cost of a move from A to B.
• D)the production possibilities frontier has a positive slope.

---

Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Common Stock

A type of equity ownership in a corporation, representing claims on a portion of its earnings and assets, with voting rights on corporate matters.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including inventory, reported in the cash flow statement.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity.