If All Resources Were Perfectly Adaptable for Alternative Uses, the Production

question 408

Multiple Choice

If all resources were perfectly adaptable for alternative uses, the production possibilities curve would

• A)be bowed out.
• B)be bowed in.
• C)be a straight line.
• D)not exist.

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Definitions:

Capital Gain

The increase in value of an asset or investment from its purchase price to its selling price.

Net Investments

The total amount spent by a company or economy on capital assets, minus depreciation, indicating the addition to the overall productive capacity.

Leverage Ratio

A financial metric used to measure a company's debt levels relative to its equity or assets.

Interest-Burden Ratio

A financial metric that measures the proportion of a company's earnings before taxes that is consumed by interest expenses.