The Steeper the PPF

question 31

Multiple Choice

The steeper the PPF,

• A) the more of both goods are exported.
• B) the more of both goods are imported.
• C) the more of both goods are consumed.
• D) the more aggregate output takes place.
• E) the greater the comparative advantage in producing one good over another.

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Definitions:

LIFO Inventory

A method of inventory valuation where the last items added to inventory are the first ones assumed to be sold, typically used to decrease tax liabilities under inflationary conditions.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and then subtracting goods sold.

Periodic Inventory System

An inventory system in which the inventory records are updated only after a physical count has been taken at periodic intervals, usually at the end of an accounting period.

Inventory Account

An account in the ledger that tracks the cost of goods a company has in stock that are available for sale.