Which Statement Is True

question 156

Multiple Choice

Which statement is true?

• A)On the production possibilities frontier,we have five percent unemployment of labor.
• B)On the production possibilities frontier,85 percent of capital is employed.
• C)If we moved closer to the origin and further away from the production possibilities frontier,unemployment would increase.
• D)To have economic growth,we must push the production possibilities frontier outwarD.
• E)All of the statements are true.

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Definitions:

Lowest Price

The minimum cost at which a product or service can be bought, often sought after in competitive markets.

Total Profits

The final financial gain from a business operation after subtracting all expenses, taxes, and costs from total revenues.

Firm

A business organization, such as a corporation or partnership, engaged in commercial, industrial, or professional activities.

Accounting Profits

The net income for a company calculated by subtracting total expenses from total revenues, according to standard accounting practices.