Consider a Production Possibilities Frontier with Corn on the Vertical

question 394

Multiple Choice

Consider a production possibilities frontier with corn on the vertical axis and cars on the horizontal. Unusually good weather for growing corn shifts

• A) the horizontal intercept rightward and the vertical intercept upward.
• B) the horizontal intercept rightward but does not shift the vertical intercept.
• C) the vertical intercept upward but does not shift the horizontal intercept.
• D) neither the horizontal intercept nor the vertical intercept.

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Definitions:

Depreciation Charge

The expense recorded to allocate the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear.

Economic Benefits

The gains received from the resources or actions, typically measured in terms of revenue or increased value.

Market Value

The price at which an asset or service could be bought or sold in a real or virtual marketplace, reflecting its current worth.

Revaluation Method

An accounting method for periodically reassessing the value of an asset, usually upward, to reflect its current value.