Which of the Following Describes When an Economy May Be

question 77

Multiple Choice

Which of the following describes when an economy may be operating at a point inside the production possibilities curve?

• A) if production resources are being used efficiently
• B) if a substantial amount of machinery is idle
• C) if a substantial amount of labour is employed
• D) if technological progress enables the economy to produce quantities of output otherwise unattainable

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Definitions:

Cost Of Goods Sold

Expenses specifically arising from the production of the merchandise a business sells, such as labor and materials.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its quick assets without needing to sell inventory.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm's financial condition.

Sales On Account

Sales made to customers for which payment is to be made in the future.