-Refer to the Above Diagram

question 21

Multiple Choice

-Refer to the above diagram.If there is a movement away from the full employment of resources in an economy with production possibilities curve AB,this can be shown by:

• A) a shift of the curve from AB to CD.
• B) a movement from point 3 to point 1.
• C) a movement from point 2 to point 4.
• D) point 5 in the diagram.

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Definitions:

Primary Economic Environment

The main economic setting in which a company operates and carries out its operations, often determined by its reporting currency and major market.

Local Overseas Currency

The official money or legal tender used in a country other than one's own, especially in the context of international trade or travel.

Functional Currency

The currency of the primary economic environment in which an entity operates, and in which it typically generates and expends cash.

Parent's Cash Flows

The cash inflows and outflows directly associated with the primary operating entity in a group of companies or conglomerate.