The Production Possibilities Curve Bows Out Because

question 328

Multiple Choice

The production possibilities curve bows out because

• A) production is efficient.
• B) of the law of increasing additional cost.
• C) production is inefficient.
• D) resources are not being fully utilized.

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Definitions:

Owner's Drawings

The amount of cash or other assets withdrawn by the owner from the business for the owner's personal use.

Net Income

The amount of profit earned by a business after all expenses and taxes have been subtracted from total revenue.

IFRS

A global set of accounting principles called International Financial Reporting Standards, formulated by the International Accounting Standards Board (IASB) to steer the compilation of financial statements worldwide.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholder equity at a specific point in time.