The Diagram Below Shows Robinson Crusoe's Annual Production Possibilities Boundary

question 24

Multiple Choice

The diagram below shows Robinson Crusoe's annual production possibilities boundary for the production of bananas and coconuts. FIGURE 33- 3
-Refer to Figure 33- 3. Starting from point B and moving to point A, his opportunity cost of producing each additional kilogram of bananas is

• A)increasing.
• B)decreasing followed by increasing.
• C)constant.
• D)decreasing.
• E)increasing followed by decreasing.

---

Definitions:

Dividend Yield Ratio

An indicator of the yearly dividends paid by a corporation as a proportion of its stock price.

Dividends Per Share

The total dividends declared by a corporation for each outstanding share of common stock, reflecting the distribution of earnings to shareholders.

Market Price

The current price at which an asset or service can be bought or sold on the open market.

Retained Earnings

The cumulative amount of net income kept within a company after dividends are paid, reinvested in the business or used to pay off debt.