An REA Diagram for the Production Cycle,models the Relationships Between

question 24

Multiple Choice

An REA diagram for the production cycle,models the relationships between the Job Operations event and the Job Operations List entity,and between the Machine Operations event and the Machine Operations List entity,as being (respectively)

• A)1:1; 1:1
• B)1:N; 1:N
• C)M:N; M:N
• D)1:N; M;N

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Definitions:

Production Possibilities Curve

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Bowed Outward

Refers to the shape of a production possibility frontier that shows increasing opportunity costs as production shifts between two goods.

Absolute Advantage

A situation in which a nation, as the result of its previous experience and/or natural endowments, can produce more of a good (with the same amount of resources) than another nation can.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its trading partners, leading to specialized production and trade benefits.