Figure 2-14 Consider the Production Possibilities Curve for a Country

question 149

Multiple Choice

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters,apples (in bushels) ,or a combination of the two
-Refer to Figure 2-14.If this economy devotes all of its available resources to producing apples,then it will produce

• A)0 bushels of apples and 200 sweaters.
• B)80 bushels of apples and 160 sweaters
• C)180 bushels of apples and 200 sweaters.
• D)180 bushels of apples and 0 sweaters.

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Definitions:

Bond Payable

A long-term liability account that represents the amount a company owes to bondholders, to be repaid at a future date.

Issue Price

The issue price is the price at which a company's securities, such as stocks or bonds, are first offered for sale to the public when they are issued.

Journal Entry

The record of a financial transaction in an accounting journal, showing the accounts and amounts debited and credited.

Adjusting Entries

Entries necessary at the end of the accounting period to measure all revenues and expenses of that period and update assets and liabilities.