If There Is Increasing Opportunity Cost,then When Moving Downward on a Production

question 276

Multiple Choice

If there is increasing opportunity cost,then when moving downward on a production possibilities frontier,the opportunity cost of the good on the horizontal axis ________ as more of the good is produced.

• A) increases and the PPF gets steeper
• B) increases and the PPF gets flatter
• C) decreases and the PPF gets steeper
• D) decreases and the PPF gets flatter
• E) does not change and the PPF gets steeper

---

Definitions:

Bad Debts

Accounts receivable that a company has determined are uncollectible, leading to their recognition as a loss.

Adjustment

Amendments made to accounts or financial statements to correct errors, update values, or reallocate revenues and expenses.

Credit Sales

Transactions where goods or services are sold to a customer with an agreement to pay at a later date, typically allowing a specific period before payment is due.

Bad Debts

Bad debts are amounts owed to a company that are no longer considered collectible, leading to their recognition as a loss.