Moe Divides His Time Between Studying Physics and Studying Economics

question 29

Multiple Choice

Moe divides his time between studying Physics and studying Economics.He has discovered that he can earn grades as shown on this production possibilities curve.
Refer to the figure above.Moe's PPC is bowed out because:

• A)he is better at physics than at economics.
• B)his studying is subject to the principle of increasing opportunity costs.
• C)he is better at economics than at physics.
• D)he has failed to take advantage of his comparative advantage.

---

Definitions:

Fees Earned

Income generated from providing services to clients or customers, often recorded when the service is performed under accrual accounting.

Wages Payable

The total amount of wages that a company owes to its employees for work performed but has not yet paid.

Prepaid Advertising

Represents the costs paid in advance for advertising services, which will be expensed over time as the advertising benefits are received.

Income Statement

A financial statement that reports a company’s financial performance over a specific accounting period, detailing revenues, expenses, and profits.