Figure 2-6 -Refer to Figure 2-6. Consider the Production Possibilities Frontier for Production

question 19

Multiple Choice

Figure 2-6

-Refer to Figure 2-6. Consider the production possibilities frontier for an economy that produces only sofas and cars. When society moves from point A to point B,

• A)the opportunity cost is the same as when society moves from point B to point C.
• B)it is giving up cars to get sofas.
• C)the opportunity cost is increasing.
• D)it moves from an inefficient point to an efficient point.

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Definitions:

Asset Account

An account that represents a resource owned or controlled by a business, expected to provide future economic benefits.

Debit

An entry recorded on the left side of an account in double-entry bookkeeping that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Liability Account

An accounting record of obligations or debts that a company owes to others, typically outside of the company.

Increase

An upward adjustment or growth in value, quantity, or size.