On a Diagram of a Production Possibilities Boundary,the Concept of Opportunity

question 55

Multiple Choice

On a diagram of a production possibilities boundary,the concept of opportunity cost is illustrated by the

• A)distance from the origin to the boundary.
• B)negative slope of the boundary.
• C)boundary being concave to the origin.
• D)unattainable points outside the boundary.
• E)area bounded by the two axes and the boundary.

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Definitions:

Annuity Cost

The total amount of money it takes to fund an annuity, which provides a series of payments at fixed intervals.

Roth Retirement Plan

A type of retirement savings account allowing taxed contributions to grow tax-free, with withdrawals in retirement also being tax-free.

Regular Retirement Plan

A retirement savings plan that allows individuals to save and invest for retirement, typically with tax advantages or benefits.

Tax Rate

The percentage at which income or financial transactions are taxed by the government.