The Production Possibilities Curve Tells Us That If Full Employment

question 50

Multiple Choice

The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods,it must

• A)also increase its production of nonmilitary goods.
• B)reduce its output of nonmilitary goods.
• C)suffer inflation.
• D)suffer unemployment.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Ending Inventory

The aggregate value of products on hand for selling when an accounting cycle concludes.

Gross Profit

The difference between revenues and the cost of goods sold before deduction of operating expenses, interest, and taxes.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.