An Inefficient Allocation of Resources or Unusually High Unemployment

question 88

Multiple Choice

An inefficient allocation of resources or unusually high unemployment:

• A)​causes the production possibilities curve to shift inward.
• B)​causes the production possibilities curve to shift outward.
• C)​can each be illustrated by a point inside the production possibilities curve.
• D)​can each be illustrated by a point outside the production possibilities curve.

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Definitions:

Capital

Refers to financial assets or the financial value of assets, such as cash and goods, used by a business to fund its operations and growth.

Fees Earned

Income received from providing services, typically recognized in the accounting period when the services are rendered.

Wage Expense

The total cost incurred by a company for the salaries and wages of its employees.

Withdrawals

Sums of money withdrawn by the business owner(s) for private expenses.