The Existence of Increasing Opportunity Cost

question 74

Multiple Choice

The existence of increasing opportunity cost

• A)explains why specialization is frequently useful.
• B)explains why resources are scarce.
• C)explains the bowed-out shape of the production possibilities frontier.
• D)follows from the existence of property rights.
• E)explains why some societies produce inside their production possibilities frontier.

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Definitions:

Par Value

The nominal value of a security stated by the issuer.

Effective Annual Yield

This refers to the real return on an investment, taking into account the effects of compounding interest over a year.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all payments of interest and principal.

Semi-annually

Semi-annually refers to an event or action occurring twice a year, or every six months.