Given Below Is the Production Possibilities Schedule for a Small

question 2

Multiple Choice

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3

-Consider the production possibilities curve for an economy producing only two commodities wheat (represented on the X axis) and wine (represented on the Y axis) . A movement up along the production possibilities curve [PPC] will imply:

• A)an increase in wheat production.
• B)an increase in both wheat and wine production.
• C)a decline in both wheat and wine production.
• D)an increase in wine production.
• E)no change in either wheat or wine production.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Sales Revenues

Income received from selling goods or services over a period of time.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.