A Production Possibilities Curve Shows

question 23

Multiple Choice

A production possibilities curve shows

• A)what happens to the amount of available resources if it is not possible to produce a good.
• B)what can be produced with unlimited resources.
• C)what happens as available resources in an economy are moved from producing one type of good to another type, or vice versa.
• D)the choice between producing some goods versus other goods with unlimited resources.
• E)the different kinds of products that a firm can produce.

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Definitions:

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Ordinary Annuity

A series of equal payments made at regular intervals, such as monthly or annually, over a specified period.

Annuity Due

An annuity payment arrangement where payments are made at the beginning of each period, as opposed to the end, which is the case with an ordinary annuity.

Return Requirement

A specified rate of return that investors expect to receive from an investment.