Figure 3-1 Peru's Production Possibilities Frontier

question 55

Multiple Choice

Figure 3-1
Peru's Production Possibilities Frontier
-Refer to Figure 3-1.If the production possibilities frontier shown is for one month of production,then which of the following combinations of emeralds and rubies could Peru produce in a given month?

• A)7 emeralds and 40 rubies
• B)5 emeralds and 92 rubies
• C)3 emeralds and 165 rubies
• D)2 emeralds and 180 rubies

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Definitions:

Work in Process

Work in process is an accounting term referring to partially finished goods that are still in the production process.

Inventory

The total amount of goods and materials held by a business for the purpose of resale, production, or utilization.

Net Income

The company's earnings remaining after deducting all expenses and taxes from its revenue.

Beginning Equity

The value of an owner's interest in a company at the start of an accounting period.