When You Move from One Point to Another on the PPF

question 77

Multiple Choice

When you move from one point to another on the PPF and the opportunity cost of producing one good in terms of the other good does not change,then the PPF:

• A) must be bowed out.
• B) must be bowed in.
• C) must be a straight line.
• D) has an indeterminate shape.

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Definitions:

Net Income

The final amount of money a company makes after taking away all expenses, including taxes and the costs of operation, from the total income.

Owner Drawings

Amounts withdrawn by the owner of a business for personal use, reducing the owner's equity in the business.

Revenues

The income earned from normal business operations and includes discounts and deductions for returned merchandise.

Expenses

Expenses refer to the outflow of money to another person or company to pay for an item or service, or for costs necessary to operate a business.