The Production Possibility Frontier Model Shows That

question 50

Multiple Choice

The production possibility frontier model shows that:

• A)if consumers decide to buy more of a product, its price will increase.
• B)a market economy is more efficient in producing goods and services than is a centrally planned economy.
• C)economic growth can only be achieved by free market economies.
• D)if all resources are fully and efficiently utilised, more of one good can be produced only by producing less of another good.

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Definitions:

General Journal

A comprehensive journal that records all types of accounting transactions, without limitation to specific categories.

Balance Sheet Columns

The sections in a balance sheet showing assets, liabilities, and shareholders' equity at a specific point in time.

Net Income

The amount of money left over after all expenses, taxes, and costs have been subtracted from total revenue; also referred to as net profit.

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a negative financial performance.