Consider a Production Possibilities Boundary Showing the Quantity of Military

question 77

Multiple Choice

Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes.A movement along the production possibilities boundary could be caused by

• A)the employment of previously idle resources.
• B)the reallocation of resources between military and civilian goods.
• C)the growth of productive capacity.
• D)an increase in the labour supply.
• E)technological progress.

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Definitions:

NPV

Net Present Value is a financial metric that calculates the present value of an investment's expected cash flows minus the initial investment.

IRR

Internal Rate of Return; the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

WACC

Short for Weighted Average Cost of Capital, it measures a firm's cost of capital, considering the weighted costs of equity and debt financing.

NPV

Net Present Value; a calculation used to determine the value of an investment by assessing the present value of its cash flows minus the initial investment.