Reductions in Available Resources Will Cause the Production Possibilities Curve

question 158

Multiple Choice

Reductions in available resources will cause the production possibilities curve to:

• A) expand.
• B) disappear.
• C) become vertical.
• D) shift inward.

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Definitions:

Revenue Recognition

The accounting standard that identifies the exact circumstances where revenue is considered or documented.

Percentage of Completion

Percentage of completion is an accounting method used to recognize revenue and expenses of long-term projects proportionally to the work completed.

Realizable Revenue

The amount of revenue that is considered to be collectible from goods sold or services rendered.

Revenue Recognition

The accounting principle that income should be reported in the accounting period when it is earned, regardless of when the cash is received.