Exhibit 2-1 Production Possibilities Curve Data -In Exhibit 2-1, According to the Information, the Opportunity Cost

question 121

Multiple Choice

Exhibit 2-1 Production possibilities curve data $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Consumption } \\\text { Goods }\end{array} & \begin{array} { c } \text { Capital } \\\text { Goods }\end{array} \\\hline 10 & 0 \\9 & 1 \\7 & 2 \\4 & 3 \\0 & 4 \\\hline\end{array}$$
-In Exhibit 2-1, according to the information, the opportunity cost of producing 3 units of capital is:

• A) 3 units of consumption goods.
• B) 4 units of consumption goods.
• C) 6 units of consumption goods.
• D) 7 units of consumption goods.

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Definitions:

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders, calculated as the difference between total assets and liabilities.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership of a portion of a company.

Dividends Declared

The amount of earnings a company decides to distribute to its shareholders as measured at a specific point in time.