In Terms of the Production Possibility Frontier,the Inefficient Use of Available

question 267

Multiple Choice

In terms of the production possibility frontier,the inefficient use of available resources is shown by:

• A) an increase in the labour force growth rate.
• B) a movement from one point to another along the production possibility frontier.
• C) an inward shift of the production possibility frontier due to the lack of opportunity.
• D) production at a point inside the production possibility frontier.

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Definitions:

Product Line

A product line is a group of related products under a single brand offered by a company to fulfill different consumer needs.

Sales Estimate

A projected figure indicating the amount of sales a company expects to achieve in a certain period.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Operating Cash Flows

The cash generated from the normal operations of a business, such as revenue from sales after operating expenses are deducted.