Currently an Economy Is Producing (At a Point on Its

question 35

Multiple Choice

Currently an economy is producing (at a point on its production possibilities frontier) 100 units of good X and the opportunity cost of producing 1X is 3Y.If good X is produced at increasing opportunity costs,then when the economy produces 120 units of good X (on the same PPF) the opportunity cost of producing 1Y (not 1X) could be

• A)1/4X.
• B)1/3X.
• C)1/2X.
• D)1X.
• E)none of the above

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Definitions:

Accretion Expense

Accretion expense relates to the gradual increase in the liability amount in an accretion bond or the process of asset value increase over time.

Operating Item

Expenses or revenues that arise from the primary operations of a company.

Asset Retirement Obligation

A legal obligation associated with the retirement of a tangible long-lived asset, where the liability is recognized in the period in which it incurs.

Indefinite-Lived Intangible

Non-physical assets without a fixed life and which do not amortize, such as trademarks or brand names, that have potential value as long as they are used by the company.