Figure 51 the Figure Shows a Linear Production Possibility Curve Representing

question 68

Multiple Choice

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​.
-Refer to figure 5.1. What does the movement from point A to point B on the production possibility curve indicate?​

• A)​It indicates that there is an increase in the demand for luxury goods in the country.
• B)​It indicates that there is an increase in the demand for necessities in the country.
• C)​It indicates that there is a fall in the per capita income of the people in the country.
• D)​It indicates that there is an increase in the price of the luxury goods.
• E)​It indicates that there is a tax rebate provided by the government of the country.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Machinery and Equipment

Physical assets used in a business operation to produce goods or services, not including buildings or property.

Assessed Tax Valuation

The valuation placed on property by a public tax assessor for the purposes of taxation.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.