In Drawing a Production Possibilities Curve, It Is Assumed That

question 85

Multiple Choice

In drawing a production possibilities curve, it is assumed that:

• A) technology does not change.
• B) the economy is fully employed and may not be efficient.
• C) there are increasing qualities of the factors of production.
• D) all of the above are true.

---

Definitions:

Noncollectibility Receivables

Accounts receivable that are considered unlikely to be collected and might be written off as bad debts.

Statistical Techniques

Mathematical methods used to collect, analyze, interpret, and present numerical data for the purpose of making informed decisions.

Future Events

Events that have not yet occurred but are expected to happen and can affect financial outcomes or business operations.

Liquidation Preference

A term used in financial structuring, determining the order in which shareholders are paid in the event of a company’s liquidation.