Which of the Following Statements Is Correct

question 271

Multiple Choice

Which of the following statements is correct?

• A) If capital is idle, the economy is producing at its full potential.
• B) The production possibilities frontier shows that there are no limits to production.
• C) A tradeoff is a limit that forces an exchange or a substitution of one thing for something else.
• D) Any point on or within the PPF is production efficient.
• E) None of the above answers are correct.

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Definitions:

Depletion Rate

The rate at which a natural resource is used or consumed, important for accounting and valuation of resource-based companies.

Extractable Ore

Refers to the portion of a mineral or natural resource deposit that can be economically and legally extracted or produced at the time of consideration.

Units-Of-Production Method

An approach to depreciation that allocates an asset's cost based on its use, output, or production, rather than passing time.