Use the Following to Answer Question

question 188

Multiple Choice

Use the following to answer question
Figure: Interpreting PPF Shifts 2
-(Figure: Interpreting PPF Shifts 2) The graph describes a situation in which:

• A) both industries have experienced technological improvements.
• B) only Industry 1 has had a technological improvement.
• C) neither industry has had technological improvements.
• D) only Industry 2 has had a technological improvement.

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders, usually in the form of cash.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of an acquired company's identifiable assets and liabilities.

Fair Value

The estimated market value of an asset or liability in an arm's length transaction between informed and willing parties.

Investment Income

Income received from the assets invested in, such as dividends, interest, or rental income.