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:

Investment Account

An account held at a financial institution that holds investments such as stocks, bonds, mutual funds, and other assets for the benefit of the investor.

Intercompany Profit

Profits that arise from transactions between companies within the same corporate group, which could distort the true financial position if not eliminated in consolidated financial statements.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.

Consolidated Statement

A financial report that incorporates the assets, liabilities, equity, income, and cash flows of a parent company and its subsidiaries.