The Production Possibilities Curve Illustrates the Basic Principle That

question 112

Multiple Choice

The production possibilities curve illustrates the basic principle that

• A)an economy's capacity to produce increases in proportion to its population.
• B)if all resources of an economy are in use, more of one good can be produced only if less of another is produced.
• C)an economy will automatically seek that output at which all of its resources are employed.
• D)no opportunity cost exists in production.

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Definitions:

Accounts

Financial records that track the financial transactions and positions of a business, including assets, liabilities, revenue, and expenses.

Balances

The amount of money or value remaining in financial accounts, such as in banking or accounting.

December 31

The last day of the year, commonly used as a cutoff date for accounting and financial reporting purposes.

Reported

Refers to the provision of formal statements or accounts of financial activities or conditions.