If a Country Produces Good Y (Measured on the Vertical

question 35

Multiple Choice

If a country produces good Y (measured on the vertical axis) and good X (measured on the horizontal axis) , then the absolute value of the slope of its production possibility frontier is equal to

• A) the opportunity cost of good X.
• B) the price of good X divided by the price of good Y.
• C) the price of good Y divided by the price of good X.
• D) the opportunity cost of good Y.
• E) the cost of capital (assuming that good Y is capital intensive) divided by the cost of labor.

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Definitions:

Incentive Fees

Fees charged by a fund manager based on the fund's performance, usually a percentage of the investment's earnings above a specified benchmark.

Portfolio Return

The overall gain or loss generated by the collection of investments held by an individual or institution, measured over a specific period.

Management Fee

A fee charged by fund managers for managing the investments within a fund, typically expressed as a percentage of assets under management.