A Point Outside a Production Possibilities Curve Indicates

question 205

Multiple Choice

A point outside a production possibilities curve indicates

• A) that resources are not being used efficiently.
• B) that resources are being used very efficiently.
• C) opportunity costs are constant.
• D) an output combination that is unobtainable with the current resource and technology levels.

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Definitions:

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period before any purchases or production are added.

Ending Inventory

The total value or quantity of goods, materials, or products in stock at the end of an accounting period.

Raw Material

Basic substances in their natural, modified, or semi-processed states used as inputs to a production process for manufacturing goods.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.