Given the Following Production Possibilities Schedules, It Can Be Seen

question 125

Multiple Choice

Given the following production possibilities schedules, it can be seen that:

• A)France has a comparative advantage in producing wine.
• B)Germany can produce more machines than France.
• C)France has a comparative advantage in producing machines.
• D)Germany can produce more of both goods than France.

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Definitions:

Tax Rate

The share of earnings upon which a person or corporation is taxed.

Market Risk Premium

The Market Risk Premium refers to the extra yield an investor anticipates receiving for investing in a volatile market portfolio over risk-free securities.

Risk-Free Rate

The projected earnings rate on a risk-free investment, usually depicted by the interest on government bonds.

Company Beta

A measure of a company's stock volatility in comparison to the overall market volatility.