Refer to the Above Production Possibilities Curves

question 131

Multiple Choice

Refer to the above production possibilities curves. Curve (a) is the initial curve for the economy. If the economy's production possibilities then shift to curve (b) , then:

• A) Point N would still indicate a case of full production and full employment of resources
• B) Point P would still indicate a case of full production and full employment of resources
• C) Point N would indicate some unemployment or underemployment of resources
• D) Point L would indicate some unemployment or underemployment of resources

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Definitions:

Ledger

A comprehensive collection of a company's financial accounts, where all transaction data is recorded, including debits and credits.

Adjusting Entries

Journal entries made at the end of an accounting period to record revenues to the period they are earned and expenses to the period incurred.

Cost of Goods Sold

The expenses directly associated with the manufacturing of products a company sells, such as materials and labor.

Customer Returns

Goods or merchandise sent back to the retailer or manufacturer by the purchaser due to defects, dissatisfaction, or other reasons.