An Inefficient Use of Resources Can Be Illustrated Using a Production

question 137

Multiple Choice

An inefficient use of resources can be illustrated using a production possibilities curve as:

• A)​a movement to the northeast along the curve.
• B)​a movement to the southeast along the curve.
• C)​a movement off the curve in a northeast direction.
• D)​a movement off the curve in a southwest direction.

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Definitions:

Assets

Economic resources controlled by a business, capable of producing value, and are expected to benefit future operations, including cash, inventory, and property.

Creditors' Claims

Rights of lenders to receive payment from a borrower or from a borrower’s assets.

Liabilities

Liabilities represent obligations or debts that a company owes to external parties, which are expected to be settled through the outflow of resources or services.

Assets

Resources owned or controlled by a business or individual, expected to bring future economic benefits.