Narrbegin Exhibit 2 Narrend
-According to the Data Given in Exhibit 2

question 104

Multiple Choice

Narrbegin Exhibit 2.3 Production possibilities curve data
$\begin{array}{|l|c|c|c|c|r|}\hline &\mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\\hline \text { Capital goods } & 0 & 10 & 20 & 30 & 40 \\\hline \text { Consumer goods } & 200 & 180 & 140 & 80 & 0\\\hline\end{array}$
Narrend
-According to the data given in Exhibit 2.3, the production of 140 units of consumer goods and 30 units of capital goods:

• A) is possible but would be inefficient.
• B) may be a result of unemployment.
• C) may be a result of unused natural resources.
• D) is impossible.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate periods.

Debt Investments

Financial investments in debt instruments, such as bonds or mortgages, where the investor lends money to a borrower in exchange for interest payments.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, but has not actually been sold for a loss.

Available-For-Sale Securities

Financial assets that are intended to be sold in the short term, not held to maturity, and are recorded at fair market value.