Any Output Combination Outside a Production Possibility Frontier Is Associated

question 12

True/False

Any output combination outside a production possibility frontier is associated with unused or under-utilised resources.

---

Definitions:

Salary Allowance

A fixed amount of money paid to employees, often as part of compensation for job-related expenses or allowances.

Interest Allowance

A provision or adjustment made for the calculation of interest receivable or payable over a specified period.

Fixed Ratio

A prescribed relationship between two quantities, expressed as a constant value.

Net Income

The total earnings of a company after deducting all costs and expenses from revenue, indicating the company's profitability.