If the Production Possibilities Curve Is a Straight Line, What

question 154

Multiple Choice

If the production possibilities curve is a straight line, what does this illustrate?

• A) Resources are not equally substitutable between productions of the goods because there is an increase in opportunity cost.
• B) As an increasing quantity of resources is shifted from one manufacturing process to another, there is no increase in opportunity cost.
• C) Opportunity costs are negative.
• D) Opportunity costs increase as output of either commodity is expanded.

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Definitions:

Incentive Compensation Systems

Payment programs designed to motivate employees' performance by aligning their incentives with the organization's goals, typically through bonuses, profit sharing, or stock options.

Work Motivation

The drive or incentive that pushes individuals to attain work-related goals or engage in work tasks.

Gain-sharing Plan

is a system in which employees receive a share of the profits based on the performance of their company or department, intended to increase productivity and align employees' interests with those of the organization.

Performance Contributions

Efforts or inputs by employees that contribute positively to the goals and success of an organization.