Which Statement Is True

question 143

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:

Manufacturing Costs

Costs specifically associated with the creation of products, encompassing materials, workforce, and indirect expenses.

Current Year

The present calendar or fiscal year in which business operations, transactions, or financial statements are being considered or reported.

Direct Materials

The raw materials that can be directly attributed to the production of goods.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including materials, labor, and overhead.