On a Graph of a Production Possibilities Frontier (PPF), Opportunity

question 201

Multiple Choice

On a graph of a production possibilities frontier (PPF) , opportunity cost is measured by

• A) the points inside the PPF.
• B) the points outside the PPF.
• C) where the PPF touches the vertical axis.
• D) the slope of the PPF.
• E) where the PPF touches the horizontal axis.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Income Attributable

The portion of net income (profit) that is available to the shareholders, after accounting for dividends to preferred stockholders and other adjustments.

Noncontrolling Interest

A stake in a company that is less than 50%, implying that the holder does not have control over the company's operations.

Equity Method

The equity method is an accounting technique used to record investments in associate companies where the investor has significant influence but does not control the company outright, typically identified by owning 20-50% of the voting stock.