Which of the Following Statements Is True

question 48

Multiple Choice

Which of the following statements is true?

• A) Productive inefficiency implies that it is possible to produce more of one good and no less of another,but only if additional resources are made available.
• B) Productive efficiency implies that it is possible to produce more of one good and no less of another,even without additional resources.
• C) Productive inefficiency implies that it is impossible to produce more of one good and no less of another.
• D) Productive inefficiency implies that it is possible to produce more of one good and no less of another,even without additional resources.

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Definitions:

Consolidated Income Statement

A consolidated income statement presents the financial performance of a parent company and its subsidiaries as one combined entity.

Forward Exchange Contract

A financial agreement between parties to exchange currencies at a predetermined future date and rate.

Annual Interest Rate

The percentage of interest that will be earned or paid on investments or loans over a one-year period.

Foreign Currency Option

A financial contract which grants the owner the option, without being obliged, to convert funds in one currency to another at a set exchange rate on a determined date.