The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 4

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4
-Refer to Figure 1-4.An outward shift of the production possibilities boundary from to indicates which of the following?

• A)an increase in the price of raw materials for consumer goods
• B)growth in the country's productive capacity
• C)an increase in the price of raw material for capital goods
• D)more of the country's resources are being used
• E)the country's resources are being used less efficiently

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Definitions:

Inventory Cost

The total cost associated with purchasing and producing goods that a company has in stock and available for sale.

Perpetual Inventory System

An inventory management system that tracks real-time changes in inventory levels with each sale or purchase, facilitating continuous updating of stock records.

LIFO

stands for Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Ending Inventory

The cost of merchandise ready for sale when an accounting cycle ends.