The Following Graph Is the Production Possibilities Curve of a Nation

question 116

Multiple Choice

The following graph is the production possibilities curve of a nation: Refer to the above graph. The marginal opportunity cost of the fourth unit of bread is:

• A) 0 unit of drill presses
• B) 1 unit of drill presses
• C) 3 units of drill presses
• D) 4 units of drill presses

---

Definitions:

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a specific product and are an essential component of its production.

Production Budget

An estimate of the total units to be produced in a given period, considering forecasted sales and desired inventory levels.

Cash Receipts

The collection of money, including currency, checks, and electronic transfers, by a business.

Sales Budget

An estimate of future sales, often detailed in terms of volume and revenue, used for planning and controlling a business's operations.