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:

Predetermined Overhead Rates

An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a selected activity base.

Machine-Hours

The total number of hours that machinery is operating for production purposes.

Machining

A manufacturing process involving the shaping of metal or other materials using machines such as lathes, milling machines, and grinders.

Finishing

Refers to the final process in manufacturing or production, where products are completed, treated, or coated to meet quality and design specifications.