A Production Possibilities Curve Shows

question 176

Multiple Choice

A production possibilities curve shows

• A)that in order to acquire more of one good,none of the alternative good must be given up.
• B)that in order to acquire more of one good,some of the alternative good must be given up.
• C)that any amount of goods could be produced by society if people worked harder.
• D)various combinations of guns and butter that can be produced under conditions of 6 percent unemployment.

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Definitions:

First-In

Typically part of the phrase "First-In, First-Out" (FIFO), a method used to assign costs to inventory on the basis that the first items entered into inventory are the first sold.

Equivalent Units

A term used in cost accounting to denote a conversion measure that expresses the amount of work done on partially completed units in terms of fully completed units.

Conversion Cost

The cost associated with converting raw materials into finished products, typically including labor and overhead expenses.

Equivalent Unit

A metric used in cost accounting to express the amount of work done on incomplete units as a proportion of work done on complete units.