The Figure Below Shows the Production Possibilities Frontier for Capital

question 127

Multiple Choice

The figure below shows the production possibilities frontier for capital goods and consumption goods.Current production at _____ would lead to the largest outward shift in the production possibilities frontier in a later year _____. Figure 2.7
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• A)Point a; because this point represents a greater consumption level than point b
• B)Point b; because this point represents greater total production than the other two points
• C)Point c; because this point represents a greater consumption level than the other two points
• D)Point b; because this point represents greater production of capital than point c
• E)Point c; because this point represents greater production of capital than the other two points

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Definitions:

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but not yet been recorded.

Unadjusted Trial Balance

A listing of all the accounts and their balances from the ledger, before any adjusting entries are made for preparing financial statements.

End-of-period Spreadsheets

Summarizing documents prepared at the end of an accounting period that compile balances from ledgers for financial reporting.

Accounting Records

Documents that track and record the financial transactions and activities of an entity, used for auditing and financial analysis.