Suppose That a Worker in Country a Can Make Either

question 137

Multiple Choice

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. Which of the following statements is now true?

• A) Country B's production possibilities frontier has rotated outward for only the production of iPhones.
• B) Country B's production possibilities frontier has shifted straight outward.
• C) Country B's production possibilities frontier has shifted straight inward.
• D) Country B's production possibilities are now more limited due to overcrowding from the extra workers.

Understand the impact of interest rates on the economy and individual financial planning.

Grasp basic principles of inflation and its effects on financial planning and the economy.

Learn the significance of consumer spending and its effects on the economy.

Understand the concepts of risk, including liquidity, inflation, and interest rate risks, in financial planning.

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Definitions:

Outstanding Stock

Shares that have been issued by a company and are held by investors, including both public shareholders and company insiders.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been subtracted from total revenues.

Brokerage Commission

A charge imposed by a broker for carrying out trades or offering specific services.

Dividends

Earnings distributed to shareholders from a company's profit, generally in the form of cash or additional shares.