The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 1

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4
-Refer to Figure 1-4.The production possibilities boundaries are drawn concave to the origin.What does this shape of the PPB demonstrate?

• A)the decreasing opportunity cost of producing more of either good
• B)the scarcity of resources in the economy
• C)the constant opportunity cost of producing more of either good
• D)the unfair distribution of resources in the economy
• E)the increasing opportunity cost of producing more of either good

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Definitions:

Salaries Earned

Compensation that employees have earned during a specific period but have not yet been paid.

Workweek

A fixed, recurring period used to measure a worker's or business's hours worked, often consisting of five to seven consecutive days.

Accounting Period

A specific time frame in which financial transactions are recorded and financial statements are prepared, typically a year or a quarter.

Prepayment

Payments made in advance for goods or services, recorded as an asset until the corresponding goods or services are received.