A Straight-Line Production Possibilities Curve Takes This Shape Because

question 286

Multiple Choice

A straight-line production possibilities curve takes this shape because

• A) the opportunity cost of producing a good is constant.
• B) the opportunity cost of producing more of a good is decreasing.
• C) resources are better suited for producing one output than another.
• D) resources are fixed.

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Definitions:

Diluted Earnings Per Share

A calculation of earnings per share that includes potential shares from convertible securities, providing a "worst-case" scenario of earnings per share.

Basic Earnings

The amount of profit attributable to shareholders before deductions for preferred dividends, calculated on a per-share basis.

Continuing Operations

The portions of a business’s activities expected to continue for the foreseeable future, as opposed to activities that are being discontinued or phased out.

Loss

A financial term referring to the situation where expenses exceed revenues, leading to negative profit.