Moving Along the Production Possibilities Frontier Itself Illustrates

question 206

Multiple Choice

Moving along the production possibilities frontier itself illustrates

• A)the existence of unemployment of some factors of production.
• B)how tradeoffs need not occur if the economy is efficient.
• C)how free lunches can be exploited through trade.
• D)the benefits of free lunches.
• E)the existence of tradeoffs.

---

Definitions:

Participative Budgeting

A budgeting process where employees at various levels of an organization are involved in the budgeting decision-making process.

Bottom-Up Budgeting

A budgeting approach that starts at the departmental or project level, with expenses and needs being identified from the bottom up, and then consolidated and reviewed at higher levels of management.

Top-Down Budgeting

A budgeting approach where the budget is created at the organization's highest level and then distributed down to departments or units.

Direct Material

Raw materials that are directly used in the manufacturing of a product and can be directly attributed to that product.