Zetaland Produces Widgets and Gadgets

question 78

Multiple Choice

Zetaland produces widgets and gadgets.At current levels of output,it can produce more of both.We can conclude that:

• A) Zetaland is at full employment.
• B) opportunity cost is maximized.
• C) some resources are not being used.
• D) the economy is on the PPF.

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Definitions:

Paid

Refers to the status of a financial obligation that has been fulfilled or settled.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net income or loss for the period.

Vertical Analysis

A financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.