-The Table Above Lists Six Points on the Production Possibilities

question 43

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Cheese } \\\text { (tons) }\end{array} & \begin{array} { l } \text { DVDs } \\\text { (thousands } \\\text { ) }\end{array} \\\hline 0 & 60 \\\hline 2 & 56 \\\hline 4 & 48 \\\hline 6 & 36 \\\hline 8 & 20 \\\hline 10 & 0 \\\hline\end{array}$$
-The table above lists six points on the production possibilities frontier for cheese and DVDs. From this information you can conclude that production is inefficient if this economy produces

• A) 5 tons of cheese and 48 thousand DVDs.
• B) 2 tons of cheese and 56 thousand DVDs.
• C) 8 tons of cheese and 21 thousand DVDs.
• D) 7 tons of cheese and 20 thousand DVDs.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.

Equity

The value of an owner's interest in a property or business, after all debts associated with that property or business are paid off.

EBIT

EBIT, which stands for Earnings Before Interest and Taxes, calculates a company's earnings without considering income tax and interest expenses.

Ending Equity

The value remaining for shareholders after subtracting liabilities from assets, evaluated at the end of an accounting period.