All Points Inside the Production Possibilities Curve Indicate

question 1

Multiple Choice

All points inside the production possibilities curve indicate

• A) a lack of sufficient supply.
• B) inefficiency in production.
• C) the law of increasing relative cost.
• D) the law of decreasing relative cost.

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Definitions:

Shares Outstanding

The total number of a company’s shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Debt-equity Ratio

The indicator showing the proportionality of equity and debt in the financial backing of a company’s assets.

Market Price

The current bid price at which an asset or service can be transacted.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.