A Firm's Marginal Rate of Return on Investment Curve Shows

question 96

Multiple Choice

A firm's marginal rate of return on investment curve shows the amount

• A)saved by the firm at each alternative interest rate
• B)invested by the firm at each alternative interest rate
• C)saved by the firm at each alternative rate of time preference
• D)invested by the firm at each alternative marginal resource cost
• E)saved by the firm at each alternative marginal revenue product of investment

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Definitions:

Production Possibilities Frontier

An economic model that depicts the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Full Employment

An economic situation where all available labor resources are being used in the most efficient way possible, typically characterized by low unemployment.

Entrepreneurial Ability

The innovation and risk-taking skills that a person possesses to create and manage a business successfully.

Economic Success

The achievement of desired financial outcomes in growth, employment, and stable prices within an economy.