The Absolute Value of the Slope of the Production Possibilities

question 57

Multiple Choice

The absolute value of the slope of the production possibilities curve at any point:

• A) gives the price of the good on the vertical axis that must be given up to attain an additional unit of the good on the horizontal axis.
• B) is found by dividing the horizontal change by a vertical change.
• C) gives the quantity of the good on the vertical axis that must be given up to produce an additional unit of the good on the horizontal axis.
• D) gives the price of the good on the horizontal axis relative to the price of the good on the vertical axis.

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Definitions:

Direct Labor-Hours

The cumulative hours employees dedicate to directly participating in the creation of a product or the provision of a service.

Overhead Rate

The ratio used to allocate overhead costs to products or services, often based on direct labor hours or costs.

Direct Labor

The cost of wages, salaries, and benefits for employees directly involved in the production of goods or services.

Raw Materials Inventory

The total cost of all the materials that are used in the production of goods, not yet processed or in the production process.