Use the Table Below to Answer the Following Questions

question 106

Multiple Choice

Use the table below to answer the following questions.
Table 2.1.2
Production Possibilities

-Refer to Table 2.1.2. According to this production possibilities frontier,

• A)a combination of 6 kilograms of butter and 1 gun leaves some resources unused.
• B)a combination of 0 butter and 4 guns is attainable.
• C)resources are equally useful in all activities.
• D)the opportunity cost of producing guns increases as more guns are produced.
• E)the opportunity cost of producing guns decreases as more guns are produced.

---

Definitions:

Loan Defaults

Occurs when a borrower fails to meet the legal obligations or conditions of a loan agreement.

Realization

The process of converting non-cash assets into cash, often recognized in accounting when revenue is earned and not necessarily when cash is received.

Bankruptcy Petition

A formal request filed to the court by an individual or business entity seeking relief from unmanageable debts through bankruptcy proceedings.