-Refer to Exhibit 2-2

question 20

Multiple Choice

-Refer to Exhibit 2-2.If PPF₂ is the relevant production possibilities frontier,then point __________ is productive efficient.

• A) B
• B) D
• C) I
• D) F
• E) both b and d

---

Definitions:

Current Assets

Assets on a balance sheet that are expected to be converted into cash, sold, or consumed within a year.

Current Liabilities

Financial obligations a company must pay within a year, such as loans, accounts payable, and other debts.

Working Capital Ratio

A financial metric that measures a company's efficiency and its short-term financial health by comparing current assets to current liabilities.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.