Exhibit 2-10 Production Possibilities Curve Data -Suppose an Economy Is Faced with the Production Possibilities Table

question 125

Multiple Choice

Exhibit 2-10 Production possibilities curve data $$\begin{array} { | l | r | r | r | r | r | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \\\text { Consumption goods } & 25 & 23 & 19 & 13 & 0 \\\hline\end{array}$$
-Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. If this economy chooses the combination of goods at point A,

• A) only capital goods are being produced.
• B) every resource in the economy is utilized in the production of capital goods.
• C) no capital goods are being used as factors of production.
• D) every resource in the economy is being used in the production of consumption goods.
• E) no consumption goods are being produced.

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Definitions:

Balance Per Books

The amount of money reported in a company's financial records or books.

Bank Reconciliation

The practice of ensuring that the figures in an organization's financial records for a cash account are in agreement with the relevant details on a bank statement.

Balance Per Bank

The amount of money in a company's bank account according to the bank's records at a specific point in time.

Bank Reconciliation

The procedure of reconciling the balance figures in a firm's accounting ledger for a cash account with the associated entries on a bank statement.