-In the Figure Above, How Can the Economy Represented by the Production

question 147

Multiple Choice

-In the figure above, how can the economy represented by the production possibilities frontier move from point C to point F?

• A) Increase the available amount of resources.
• B) Increase the level of technology.
• C) Redistribute the existing resources to produce more apples and fewer oranges.
• D) First move to point B and then move to point F.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to present value to account for risk and time value of money.

Working Capital

The gap between a firm's current assets and its current liabilities, showcasing its short-term financial stability.

Annual Cash Inflow

The total amount of money received by a company over a year, including revenues from sales, investments, and other sources.

Net Present Value

An economic indicator that finds the disparity between cash inflows' present value and the present value of cash outflows during a certain period.