A Production Possibilities Curve Shows

question 68

Multiple Choice

A production possibilities curve shows:

• A)that resources are unlimited.
• B)that people prefer one of the goods more than the other.
• C)the maximum amounts of two goods which can be produced assuming the full and efficient use of available resources.
• D)combinations of capital and labour necessary to produce specific levels of output.

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Definitions:

Administrative Expense

Costs related to the general administration of a business, including office supplies, salaries of administrative personnel, and utilities.

Freight-Out

The cost of shipping goods to customers, which is typically recorded as a selling expense.

Production Budget

A plan that outlines the number of units to be produced within a specific period to meet anticipated sales and inventory needs.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.