A Production Possibilities Curve with Quantities of Clothing and Food

question 302

Multiple Choice

A production possibilities curve with quantities of clothing and food on the axes shows which of the following? I. A society cannot have an unlimited amount of each good.
II) For an efficient society, an increase in clothing production will necessitate a decrease in food production.
III) A society will always produce the maximum amount of both clothing and food.

• A) I only
• B) II only
• C) III only
• D) Both I and II

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Definitions:

Taxes Payable

Liabilities due to federal, state, or local tax authorities within the next fiscal year.

Earnings per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of its common stock.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenue.

Common Shares

Equities owned in a corporation, representing a share of the company's profits and a right to vote on certain matters.