Suppose a Scientific Breakthrough Leads to a Lower- Cost Method

question 16

Multiple Choice

Suppose a scientific breakthrough leads to a lower- cost method of producing battery- operated cars in Canada. The likely effect would be to move Canada's current production

• A)possibilities boundary inward.
• B)above the level of U.S. production.
• C)to a point inside its new production possibilities boundary.
• D)to a point beyond its new production possibilities boundary.
• E)possibilities boundary outward.

---

Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, accounting for interest payments and the repayment of principal.

Semi-Annual

Occurring twice a year, or every six months.

Quoted

Refers to the current price of a security, commodity, or index as provided by a market or exchange.

Callable Bond

A type of bond that the issuer has the right to repay before its maturity date, at a predetermined call price.