Consider the Production Possibilities Frontier Displayed in the Figure Shown

question 22

Multiple Choice

Consider the production possibilities frontier displayed in the figure shown. The opportunity cost of one scarf between points C and D is:

• A) 1 sweater.
• B) 20 sweaters.
• C) 10 sweaters
• D) 2 sweaters.

---

Definitions:

Dividend

A payment made by a corporation to its shareholders, usually in the form of cash or stock, from its earnings.

Loss

The reduction in the financial valuation of an investment, or when expenses exceed the income or total amount invested.

Net Capital Spending

The total spending on fixed assets minus the proceeds from the sale of fixed assets.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of the issuing corporation's stock, rather than cash.