The Figure Given Below Represents the PPC in Two Nations

question 93

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Which of the following statements correctly defines the law of demand?

• A)The lower the price of a commodity, the lower the quantity demanded of that commodity.
• B)As the price of a commodity increases, the quantity demanded of that commodity also increases.
• C)The lower the price of a commodity, the greater the quantity demanded of that commodity.
• D)The lower the price of a commodity, the greater the quantity supplied of that commodity.
• E)The quantity demanded of a particular good decreases with an increase in the price of a substitute good.

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not intended to be sold within a year.

Average Collection Period

The average number of days it takes for a company to collect payments from its credit sales.

Collection Policy

The procedures and guidelines used by a company to monitor and manage the collection of debts owed to it.

Questionable Receivables

Accounts receivable that might not be collected due to issues like customer disputes or financial instability.