The Production Possibility Curve Is Bowed Outward from the Origin

question 46

Multiple Choice

The production possibility curve is bowed outward from the origin because of:

• A)the law of decreasing opportunity costs.
• B)the finite nature of the resource base.
• C)inefficiency.
• D)the changes in the opportunity cost due to different efficiencies of the same resource in different use.
• E)unemployment.

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Definitions:

Mass Customization

An approach to manufacturing that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Tax Losses

Financial losses that can be offset against other gains or income for tax purposes, potentially reducing the overall tax liability.

Cash Flow

The aggregate of funds entering and exiting a corporation, significantly impacting its liquidity levels.

Merger

The combining of two or more companies into a single entity, often to enhance competitiveness and efficiency.