The Production Possibilities Curve Illustrates Which Two of the Following

question 65

Multiple Choice

The production possibilities curve illustrates which two of the following essential principles?

• A)Factors of production and price signals.
• B)Scarce resources and opportunity cost.
• C)Market mechanisms and laissez faire.
• D)Economic growth and market failure.

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Definitions:

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management uses equity investments.

Total Capitalization

The total value of a company’s outstanding equity and debt.

Note Payable

A liability in a formal written promise to pay a specific amount of money at a future date or dates.

Common Stock

Represents an equity ownership in a corporation, giving holders voting rights and a share of the company's profits via dividends.