Figure 3-4 Lisa's Production Possibilities Frontier

question 10

Multiple Choice

Figure 3-4
Lisa's Production Possibilities Frontier
Bryce's Production Possibilities Frontier
-Refer to Figure 3-4.If the production possibilities frontiers shown are each for one year of production,then which of the following combinations of sweaters and jackets could Lisa and Bryce together not produce in a given year?

• A)1 sweater and 21 jackets
• B)2 sweaters and 20 jackets
• C)3 sweaters and 12 jackets
• D)5 sweaters and 4 jackets

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Definitions:

Market System

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.

Business Risk

The exposure a company or investor has to factor(s) that will lower its profits or lead it to fail.

Business Risk

The exposure to factors that may cause a business to experience lower than expected profits or even losses, including market changes, regulatory changes, and operational failures.

Macroenconomy

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on national income, unemployment, and inflation.