If a Country Is Currently Producing Inside Its Production Possibilities

question 81

Multiple Choice

If a country is currently producing inside its production possibilities curve

• A) it can increase the production of both goods by putting unemployed resources to work.
• B) it can increase the production of one of the goods only if it reduces the production of the other good.
• C) it is experiencing efficient production of one good but not the other.
• D) None of the above are correct.

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Definitions:

LIFO Method

An inventory valuation method called "Last In, First Out" where the most recently produced items are recorded as sold first.

Ending Inventory

The aggregate worth of merchandise available for purchase at the closing of an accounting cycle.

Brown Bears

Large omnivorous mammals found across parts of northern Eurasia and North America, known for their thick fur and powerful build.

Markup

The amount added to the cost price of goods to cover overhead and profit; calculated as a percentage of the cost.