Any Point Inside the Production Possibilities Curve Indicates

question 44

Multiple Choice

Any point inside the production possibilities curve indicates:

• A)that resources are imperfectly shiftable among alternative uses
• B)the presence of inflationary pressures
• C)that more output could be produced with available resources
• D)that the economy is saving a part of its income
• E)that some of an economy's potential output is not desired by consumers

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Definitions:

Product Costs

The total costs incurred to create a product, including direct labor, materials, and overhead.

Manufacturing Activities

The set of processes involved in the production of goods, ranging from raw materials handling to the final assembly of products.

Departmental Overhead Rate

A charge rate specific to each department of a company, calculated to allocate indirect costs to products more accurately.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by total direct labor hours or machine hours, applied company-wide.