Use the Figure Below to Answer the Following Questions

question 43

Multiple Choice

Use the figure below to answer the following questions.

Figure 2.1.3
-Figure 2.1.3 illustrates Mary's production possibilities frontier. If Mary wants to move from point D to point C,

• A)it will be necessary to improve technology.
• B)it will be necessary to increase the accumulation of capital.
• C)it will be necessary to give up some of good X to obtain more of good Y.
• D)it will be necessary to give up some of good Y to obtain more of good X.
• E)she can accomplish this without any opportunity cost.

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Definitions:

Consolidated Balance Sheet

A financial statement showing the total assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as if they were a single entity.

Acquisition Differential

The difference between the cost of acquiring a company and the fair value of its identifiable net assets.

Equity Method

An accounting technique used to record the investments in other companies, where the investment is significant but the investor does not have full control.

Patent

A legal right granted to an inventor for an exclusive period, typically 20 years, to exploit a new, useful, and non-obvious invention.