Points That Lie Outside the Production Possibilities Curve Are ________

question 161

Multiple Choice

Points that lie outside the production possibilities curve are ________, and points that lie inside the production possibilities curve are ________.

• A)efficient; inefficient
• B)inefficient; efficient
• C)unattainable; attainable
• D)attainable; unattainable

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a forced or liquidation sale.

Cost Method

An accounting method used to record investments, where the investment is recorded at its acquisition cost without recognizing periodic gains or losses.

Outstanding Stock

The total shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Net Income

The remaining earnings of a company after deducting all expenditures and taxes from the revenues.