When a Country Is Producing Goods and Services Efficiently It

question 38

Multiple Choice

When a country is producing goods and services efficiently it:

• A) is producing at a point on or below its production possibilities frontier.
• B) is getting the most output by using all its available resources.
• C) has unemployed workers.
• D) is able to reach a point beyond its production possibilities frontier.

---

Definitions:

IFRS

A collection of accounting standards established by the International Accounting Standards Board, intended for worldwide application, known as International Financial Reporting Standards.

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded when cash is received or paid, as opposed to when they are incurred.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value over time.

Wages

Amounts paid to employees based on a rate per hour or on a piecework basis.