Suppose a Production Possibilities Frontier (PPF)has Been Plotted on a Graph.If

question 22

Multiple Choice

Suppose a production possibilities frontier (PPF) has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point inside the PPF represents:

• A)a larger quantity of capital goods than that represented by a point along the PPF.
• B)an inefficient output combination of the two goods in the economy.
• C)an unattainable output combination of the two goods in the economy.
• D)an output combination of more consumer goods than capital goods.
• E)a larger quantity of consumer goods than that represented by a point along the PPF.

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Definitions:

Inventory

The items or goods a company holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

Low-Cost Strategy

A competitive strategy focusing on becoming the lowest cost producer in an industry to offer products or services at the lowest price possible to consumers.

Production Lead Time

The total time required to manufacture an item, including order preparation, queue, setup, run, inspection, and put-away time.

Supply-Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.