Suppose That a Worker in Country a Can Make Either

question 138

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. Which of the following is a bundle of goods that Country B could potentially make?

• A) (400 iPhones, 2,000 iPads)
• B) (200 iPhones, 1,500 iPads)
• C) (300 iPhones, 450 iPads)
• D) (400 iPhones, 1 iPad)

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Definitions:

Yield to Maturity

The total rate of return anticipated on a bond if it is held until the date it matures, considering all payments of principal and interest.

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate.

Dividends

Financial dividends issued by a corporation to its stockholders, primarily generated from the organization's revenues.

Coupon Payments

Periodic interest payments made to bondholders during the life of the bond.