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Exhibit 2-13 Production Possibilities Curve in Exhibit 2-13, If

question 28

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Exhibit 2-13 Production possibilities curve Exhibit 2-13 Production possibilities curve   In Exhibit 2-13, if the economy decides to locate at point E, then: A) this is the best choice for this economy. B) the maximum number of consumption goods is being produced. C) the economy has not achieved full employment. D) the economy could not survive because no food is being produced. E) the economy has not achieved maximum efficiency. In Exhibit 2-13, if the economy decides to locate at point E, then:

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Definitions:

Raw Materials

The basic materials from which products are made, typically not yet processed or manufactured.

Factory Payroll

The total compensation paid to all employees working within a manufacturing plant or factory.

Overhead Applicable

The portion of overhead costs that are assigned to a specific product, service, or job based on a predetermined rate or method.

Direct Materials

Raw materials that are directly traceable to the manufacturing process of a specific product and integral to its production.

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