As a Society Produces More and More of One Good,it

question 31

Multiple Choice

As a society produces more and more of one good,it must give up increasing amounts of the alternative good.This demonstrates the

• A) law of demand
• B) convexity of the production possibilities frontier
• C) law of increasing opportunity cost
• D) principle of productive inefficiency
• E) effects of shifts in the level of technology

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Definitions:

Accounts Payable Period

The average amount of time it takes for a business to pay its invoices from suppliers and creditors.

Accounts Receivable Period

The standard length of time required for an enterprise to collect receivables from clients for credit sales of goods or services.

Operating Cycle

The duration it takes for a company to purchase inventory, sell products, and receive cash from sales, indicating the company's efficiency in managing its core operations.

Inventory Period

The average time it takes for inventory to be sold and replaced over a period, a key component of efficiency in supply chain management.