Whenever Productive Resources Are Used to Make Capital Goods

question 94

Multiple Choice

Whenever productive resources are used to make capital goods

• A) society is not producing efficiently.
• B) society is giving up current consumption.
• C) the production possibilities curve becomes flatter.
• D) absolute advantage occurs.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture, including the risk of not receiving expected returns.

Financial Distress Costs

Expenses stemming from a company's financial troubles, including the costs of bankruptcy, restructuring, and impaired ability to conduct business.