In Terms of the Production Possibility Frontier, Inefficient Use of Available

question 39

Multiple Choice

In terms of the production possibility frontier, inefficient use of available resources is shown by:

• A)an increase in the labor force growth rate.
• B)a movement from one point to another along the production possibility frontier.
• C)an inward shift of the production possibility frontier due to the lack of opportunity.
• D)a point inside the production possibility frontier.

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Definitions:

Cost of Capital

The necessary rate of gain a company must obtain from its investments to keep its market price constant and attract financial support.

Project Risk

The potential for losing time, quality, or resources in the pursuit of a project’s objectives.

Security Issued

Financial instruments that are offered for sale by a corporation or a government entity, typically in the form of stocks or bonds.

Cost of Equity

The return that investors require for an investment in a company, representing the compensation for the risk taken.