Figure 2-14 Consider the Production Possibilities Curve for a Country

question 114

Multiple Choice

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters,apples (in bushels) ,or a combination of the two
-Refer to Figure 2-14.If this society moves from point U to point V,

• A)it gives up 40 bushels of apples to get 80 sweaters.
• B)it gives up 140 bushels of apples to get 80 sweaters.
• C)it gives up 80 sweaters to get 140 bushels of apples.
• D)it gives up 80 sweaters to get 40 bushels of apples.

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Definitions:

Budgetary Slack

The practice of underestimating revenues or overestimating costs when preparing a budget to create a buffer.

Budget Process

The procedure by which an organization or individual creates a plan to allocate resources and monitor financial activity over a specified period.

Performance Expectations

The standards or benchmarks that an organization or individual aims to achieve within a specific time frame.

Production Budget

An estimate of the total units of production a company needs to meet anticipated sales demand.