Moving from One Point to Another on a Production Possibilities

question 211

Multiple Choice

Moving from one point to another on a production possibilities frontier implies

• A) increasing the production of both goods.
• B) decreasing the production of both goods.
• C) increasing the production of one good and decreasing the production of another.
• D) holding the production levels of both goods constant.
• E) changing the amount of factors of production that are employed.

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Definitions:

Standard Material

A benchmark or norm for the quality and type of materials used in the production of goods, aiding in cost control and budgeting.

Service Company

A business that provides services to consumers or other businesses rather than manufacturing goods.

Planning Budget

A budget established at the beginning of the budgeting period that is valid only for the planned level of activity.

Net Operating Income

A financial metric that calculates a company's profit after operating expenses are subtracted but before income taxes and interest are deducted.