An Efficient Allocation of Resources Exists If

question 205

Multiple Choice

An efficient allocation of resources exists if

• A)one group of people can get more of the things they want without someone else having to give up anything.
• B)no one can get more of the things he wants without someone else having to give up something.
• C)the economy operates at any point under the production possibilities frontier.
• D)the economy is operating at any point above the production possibilities frontier.

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Definitions:

Capital Projects Fund

A governmental accounting fund used to account for financial resources set aside for the acquisition or development of major capital assets.

Governmental Fund Financial Statements

Financial reports that focus on the sources, uses, and balances of governmental funds and provide insight into fiscal accountability.

Proprietary Funds

Funds used by a governmental entity to account for activities similar to those found in private businesses, where the determination of net income, financial position, and changes in financial position is necessary.

For-Profit Organizations

Entities that operate with the primary goal of earning profit, distributing earnings to owners or shareholders.