Use the Figure Below to Answer the Following Questions

question 132

Multiple Choice

Use the figure below to answer the following questions.

Figure 2.1.3
-Refer to the production possibilities frontier in Figure 2.1.3. The fact that less of X must be given up when moving from D to C than when moving from B to A indicates

• A)decreasing opportunity cost.
• B)increasing opportunity cost.
• C)comparative advantage in the production of X.
• D)the consequences of technological improvement.
• E)unemployed resources at D.

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Definitions:

Machine-Hours

A measure of the amount of time machines are run, often used as a base for allocating factory overhead.

Total Job Cost

The cumulative cost of materials, labor, and overhead for a specific job or project.

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, making it possible to track the cost of specific jobs.

Machine-Hours

A measure of production time, used as a basis for allocating manufacturing overhead costs based on the number of hours machines are operated.