Suppose the Economy Goes from a Point on Its Production

question 57

Multiple Choice

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

• A)a gain of resources.
• B)a loss of resources.
• C)technological improvement in the production of both goods.
• D)a new law that interferes with economic efficiency.

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Definitions:

Credits

Accounting entries that increase liabilities or equity or that decrease assets.

Cash Receipts

The collection of money, including coins, notes, cheques, and electronic transactions, received from activities such as sales or services.

Debiting

The act of recording an entry on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Alphabetical Order

A method of sorting by arranging items according to the sequence of the letters in the English alphabet.