The Construction of a Production Possibilities Curve Assumes

question 339

Multiple Choice

The construction of a production possibilities curve assumes

• A) the quantities of all resources are unlimited.
• B) technology is fixed.
• C) some resources are unemployed.
• D) there is no inflation in the economy.

---

Definitions:

Maturity Value

The amount payable to the investor at the end of a fixed-term investment, including both the principal and the interest.

Compounded Semi-Annually

This refers to the process of calculating interest on the initial principal and the accumulated interest over two periods within a year.

11%

11% typically refers to an interest or annual rate, indicating that 11 percent of the principal amount will be paid in interest over a year.

Nominal Rate

The promoted or declared rate of interest on a loan or investment, excluding the impacts of compounding and inflation.