If the Production Possibilities Frontier for Two Goods Is Shown

question 73

Multiple Choice

If the production possibilities frontier for two goods is shown as a straight line, this implies that

• A)there is no trade-off between the two goods.
• B)the principle of increasing costs is present.
• C)the slope of the production possibilities frontier is increasing.
• D)there are no specialized resources used in the production of these goods.

---

Definitions:

Purchases Journal

The purchases journal is an accounting record used to document all purchases of merchandise on credit, tracking the total amount owed to suppliers.

Cash Receipts Journal

A specialized accounting journal used to record all cash inflows or cash received by an organization.

Prepaid Insurance

An asset account representing insurance paid in advance, which will be expensed over the period it benefits.

Fees Earned

Income or revenue generated through providing services.