-Refer to the Table Above, Which Gives Five Points on
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question 186

Multiple Choice

$$\begin{array} { | l | l | l | } \hline \text { Point } & \begin{array} { l } \text { Production } \\\text { of } X\end{array} & \begin{array} { l } \text { Production } \\\text { of } Y\end{array} \\\hline a & 0 & 40 \\\hline b & 4 & 36 \\\hline c & 8 & 28 \\\hline & 12 & 16 \\\hline e & 16 & 0 \\\hline\end{array}$$
-Refer to the table above, which gives five points on a nation?s PPF. As we increase the production of X,

• A) the opportunity cost of each new unit of X decreases.
• B) the opportunity cost of each new unit of X increases.
• C) the output of Y increases.
• D) unemployment increases.

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Definitions:

Interest Rate

The proportion, in a percentage, at which interest is paid by borrowers for the use of money that they borrow from a lender. It is a critical component of the credit markets.

Years

A unit of time equal to 365 days (or 366 days in a leap year), used in calendar timekeeping.

Present Value

The value right now of a sum of money expected in the future or a sequence of cash inflows, factoring in a specific rate of return.

Discount Rate

This is the rate of interest utilized in the process of discounted cash flow analysis to calculate the current value of future cash flows.