Which of the Following Would Be Most Likely to Cause

question 13

Multiple Choice

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?

• A) A choice of more computers and less education.
• B) A choice of more education and less computers.
• C) A reduction in the labor force.
• D) An increase in the quantity of resources.

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Definitions:

External Reporting

The provision of financial and non-financial information to external stakeholders, such as investors, creditors, and regulatory agencies, usually formal and standardized.

Fixed Manufacturing Costs

Expenses that do not change with the level of production, including things like rent for factory space and salaries of permanent staff.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Product Costs

All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Also see Inventoriable costs.