-The Table Above Shows the Production Possibilities for an Economy

question 112

Multiple Choice

-The table above shows the production possibilities for an economy. When the economy produces a combination of 900 books and 50 loaves of bread,

• A) production efficiency is not achieved.
• B) allocative and production efficiency are both achieved.
• C) production efficiency is not achieved but allocative efficiency might be achieved.
• D) production efficiency occurs because resources are not overused.
• E) allocative efficiency is achieved because both goods are produced.

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Definitions:

Initial Margin

The initial margin is the upfront investment required when buying on margin or entering a futures contract, acting as a security deposit for the trade.

Maintenance Margin

The minimum amount of equity an investor must maintain in a margin account after the purchase has been made, to keep the position open.

Interest Rate Swaps

Financial derivatives contracts where two parties exchange interest rate payments on a specified principal amount, typically exchanging fixed for floating rates.

Fixed-rate Bonds

Fixed-rate Bonds are bonds that pay the same rate of interest from issue until maturity, regardless of changes in market interest rates.