When Can a Country's Consumption Possibilities Frontier Be Outside Its

question 30

Multiple Choice

When can a country's consumption possibilities frontier be outside its production possibilities frontier?

• A) if additional resources become available
• B) if there is an increase in the level of technology
• C) if the country engages in trade
• D) if resources are adaptable.

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Definitions:

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Cash Dividend

A payment made in cash to shareholders, typically distributed from a company's earnings.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or debt repayment, instead of being paid out as dividends.

Dividend Policy

A company's strategy or guideline determining the amount of profits paid out to shareholders as dividends versus being reinvested in the business.