The Production Possibilities Curve Shifts Outward When

question 83

Multiple Choice

The production possibilities curve shifts outward when

• A) the law of increasing additional cost takes hold.
• B) the economy is producing efficiently.
• C) we produce more consumption goods over productive investment in equipment.
• D) there is an increase in resources or technology.

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Definitions:

Prefab Barns

Pre-engineered buildings designed for agricultural or storage purposes, which come in kits for quick and easy assembly.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often using direct labor hours or machine hours as the base.

Activity-Based Costing

A costing technique that assigns costs to products or services based on the activities and resources that contribute to the production or delivery.

Activity Rate

In cost accounting, it refers to the cost driver rate used in activity-based costing to allocate overhead costs to products or services based on their consumption of activities.