Production Possibility Frontiers

question 177

Multiple Choice

Production possibility frontiers:

• A)illustrate the production choices available to an economy.
• B)assume full employment but not maximum efficiency.
• C)assume maximum efficiency but not full employment.
• D)are used to illustrate the law of decreasing opportunity costs.

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Definitions:

Installment Receivables

Money owed to a company from its customers who have purchased goods or services on a payment plan over a set period of time.

Realized Gross Profit

The total earnings a company makes after deducting the direct costs associated with producing its goods or services.

Revenue Recognition

The accounting principle that dictates when revenue is considered earned and can be recorded in the company's financial statements.

IASB And FASB

The International Accounting Standards Board and the Financial Accounting Standards Board, two organizations involved in setting global and U.S. accounting standards, respectively.