The Figure Below Shows Production Possibilities Curves for Tomatoes and Oranges

question 29

Multiple Choice

The figure below shows production possibilities curves for tomatoes and oranges in two prefectures in a country.

-Refer to the figure above.In Prefecture A,the opportunity cost of producing each additional pound of tomatoes ________.

• A) increases as more tomatoes are produced
• B) stays the same as more tomatoes are produced
• C) decreases as more tomatoes are produced
• D) increases up to 1 billion (1,000 million) pounds and then decreases after 1 billion pounds

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Definitions:

Maturity Date

The date on which a financial obligation is due to be paid, such as the final payment date of a loan or bond.

Credit Sale

A sales transaction in which the amount due is not paid at the time of sale but is promised to be paid in the future by the purchaser.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Accrued Interest

The interest that has been earned but not yet paid, accumulating on loans, bonds, or any other financial instruments over a period of time.