If the Production Possibilities Frontier Between Two Goods Were a Straight

question 80

Multiple Choice

If the production possibilities frontier between two goods were a straight line,then the opportunity cost of one good in terms of another would be

• A)zero.
• B)constant.
• C)decreasing.
• D)increasing.
• E)either constant,increasing or decreasing,but more information is needed to determine which.

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and salaries, excluding direct production costs.

Revenues

The sum of revenue obtained through the sales of products or services that are central to a company's main activities.

Multiple-Step

An income statement format that separates operating revenues and expenses from nonoperating revenues, expenses, and gains and losses.

Single-Step

An income statement format that consolidates all revenues and gains together and all expenses and losses together, resulting in a single step to determine net income.