Which of the Following Distinguishes a "Straight-Line" Production Possibilities Curve

question 73

Multiple Choice

Which of the following distinguishes a "straight-line" production possibilities curve from one that is "bowed out"?

• A)A straight-line production possibilities curve exhibits increasing opportunity costs, whereas a bowed production possibilities curve does not.
• B)A straight-line production possibilities curve exhibits decreasing opportunity costs, whereas a bowed production possibilities curve exhibits constant opportunity costs.
• C)A straight-line production possibilities curve exhibits constant opportunity costs, whereas a bowed production possibilities curve exhibits increasing opportunity costs.
• D)A straight-line production possibilities curve is upward sloping, whereas a bowed production possibilities curve is not.
• E)A straight-line production possibilities curve exhibits constant opportunity costs, whereas a bowed production possibilities curve exhibits decreasing opportunity costs.

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Definitions:

Statement of Owner's Equity

A financial statement that outlines the changes in the equity of a company over a specific period, including contributions, withdrawals, and the net income or loss.

Worksheet

An accounting tool used for planning and preparing financial statements, allowing accountants to adjust and update figures through a series of adjustments.

Depreciation Expense

the systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, resulting in net profit or loss.