Consider a Production Possibilities Frontier with Corn on the Vertical

question 394

Multiple Choice

Consider a production possibilities frontier with corn on the vertical axis and cars on the horizontal. Unusually good weather for growing corn shifts

• A) the horizontal intercept rightward and the vertical intercept upward.
• B) the horizontal intercept rightward but does not shift the vertical intercept.
• C) the vertical intercept upward but does not shift the horizontal intercept.
• D) neither the horizontal intercept nor the vertical intercept.

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Definitions:

Swap Contract

An agreement by two parties to exchange, or swap, specified cash flows at specified intervals in the future.

Currencies

Forms of money that are issued by governments and used as a medium of exchange for goods and services in economic transactions.

Interest Rates

The percentage charged on the total amount borrowed or earned, reflecting the cost of borrowing or the yield on investments.

Commodities

Raw materials or primary agricultural products that can be bought and sold.