If the United States Decides to Convert Automobile Factories to Tank

question 61

Multiple Choice

If the United States decides to convert automobile factories to tank production,as it did during World War II,but finds that some auto manufacturing facilities are not well suited to tank production,then

• A)The production possibilities curve between tanks and automobiles will appear as a straight line.
• B)The production possibilities curve between tanks and automobiles will shift outward.
• C)Decreasing opportunity costs will occur with greater automobile production.
• D)Increasing opportunity costs will occur with greater tank production.

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Definitions:

Sales Journal

A specialized accounting journal used to record all sales of goods and services on credit.

Sales Revenue

The total amount of money a company receives from its sales of goods or services before any expenses are subtracted.

Cross-Footing

A bookkeeping process that involves checking the mathematical accuracy of figures in financial statements by ensuring that sums of columns and rows respectively match.

Cash Receipts Journal

A specialized accounting journal used to record all receipts of cash.