Figure 2-7 -Refer to Figure 2-7.Which of the Following Would Most Likely

question 207

Multiple Choice

Figure 2-7

-Refer to Figure 2-7.Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

• A)an increase in the availability of capital-producing resources
• B)a technological advance in the consumer-goods industries
• C)a general technological advance
• D)a decrease in unemployment

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Definitions:

Margin Of Safety

The difference between actual sales and breakeven sales, quantifying how much output or sales level can drop before a business incurs a loss.

Variable Expenses

Costs that change in direct proportion to changes in the level of activity or production volume, such as raw material costs.

Break-even Point

The point at which total revenue equals total costs, and no profit is earned or lost, often used to determine the feasibility of a business venture or product.

Unit Variable Expenses

Costs that vary directly with the production volume, calculated on a per-unit basis.