If All Resources Are Used Efficiently to Produce Goods and Services

question 1

Multiple Choice

If all resources are used efficiently to produce goods and services, where on the production possibilities frontier will a nation will find itself producing?  

• A) inside its production possibilities frontier 
• B) somewhere on its production possibilities frontier 
• C) outside of its production possibilities frontier 
• D) at two points on its production possibilities frontier

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Definitions:

Cash Receipts

Money or cash equivalents received during a period of time including revenues from normal business operations and other activities.

Purchases On Account

The acquisition of goods or services with an agreement to pay for them at a later date, typically through the use of credit.

Accounts Receivable Subsidiary Ledger

A ledger containing detailed information on transactions related to individual customers to whom sales on credit have been made.

Collections From Customers

The process and activities involved in gathering all payments owed by customers for goods and services sold to them.