A Point Outside a Production Possibilities Curve Indicates

question 264

Multiple Choice

A point outside a production possibilities curve indicates

• A) that resources are not being used efficiently.
• B) an output combination that society cannot attain given its current level of resources and technology.
• C) that resources are being used very efficiently.
• D) that both goods are characterized by increasing costs.

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Definitions:

Financing Activities

Transactions between a business and its sources of funding, including equity and debt, reflected in the cash flow statement.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Common Stock

Shares that constitute ownership in a corporation, providing voting rights and entitling shareholders to a portion of the company’s profits through dividends.

Cash Dividend

A payment made by a company to its shareholders, usually in cash, out of its profits or reserves.