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the Table Above Shows a Production Possibilities Frontier for }

question 24

Multiple Choice

$\begin{array} { c c c } \hline \text { Possibility } & \begin{array} { c } \text { Bread } \\\text { (number) }\end{array} & \begin{array} { c } \text { Books } \\\text { (number) }\end{array} \\\hline \text { A } & 0 & 1,000 \\\text { B } & 100 & 900 \\\text { C } & 200 & 700 \\\text { D } & 300 & 400 \\\text { E } & 400 & 0 \\\hline\end{array}$

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The table above shows a production possibilities frontier for an economy. Which of the following combinations is unattainable?

• A)0 loaves of bread and 800 books
• B)100 loaves of bread and 800 books
• C)300 loaves of bread and 200 books
• D)200 loaves of bread and 800 books
• E)0 loaves of bread and 0 books

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Definitions:

Diversifiable Risk

The component of an investment's risk that can be reduced or eliminated through diversification, which involves spreading investments across various assets to reduce exposure to any single risk.

Unique Risk

Unique Risk, also known as unsystematic risk, refers to the risk associated with a specific company or industry that can be reduced through diversification.

Systematic Risk

The portion of investment risk that is inherent in the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Market Risk

The potential for investors to experience losses due to factors that affect the overall performance of the financial markets.