Use the Following to Answer Question(s): Production Possibilities in Alphaland

question 63

Multiple Choice

Use the following to answer question(s) : Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?

• A) Omegaland can produce more computers than Alphaland.
• B) Alphaland is capable of producing more of both goods.
• C) Trade is not possible since it would not be advantageous for Alphaland.
• D) Trade will benefit Alphaland but not Omegaland.

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Definitions:

Dividends

Money distributed to shareholders by a corporation, usually from the company's profits.

Business Expense

Costs incurred in the ordinary course of business, including salaries, rent, and office supplies, among others.

Dividend Growth Rate

The yearly percent increase in a corporation's dividends for each share.

Discount Rate

The interest rate used to discount future cash flows to their present values, often reflecting the risk or the cost of capital associated with an investment.