Efficiency Is Illustrated by

question 221

Multiple Choice

Efficiency is illustrated by

• A)both the production possibilities frontier and the circular-flow diagram.
• B)neither the production possibilities frontier nor the circular-flow diagram.
• C)the production possibilities frontier only.
• D)the circular-flow diagram only.

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Definitions:

Variable Costs

Charges that adjust in line with changes in production volume or output quantity.

Required Return

A rephrasing of Required Rate of Return; it's the expected return that investors demand for an investment in a particular asset, based on its risk.

Cash Break-even

The point at which a business generates enough cash flow to cover its operating expenses and capital costs.

Variable Costs

Expenses that vary directly with the level of business activity.