Use the Following to Answer Question(s)

question 180

Multiple Choice

Use the following to answer question(s) :
Exhibit: Strawberries and Submarines

-(Exhibit: Strawberries and Submarines) Suppose the economy is now operating at point A. The first submarine, which is achieved at point B, would have an opportunity cost of _______ million tons of strawberries.

• A) 50
• B) 150
• C) 400
• D) 950

---

Definitions:

Par

A term that refers to a financial instrument trading at its face or nominal value.

Rate

The percentage at which a particular event occurs, often used in the context of interest or growth rates.

Dividends

Capital paid by a corporation to its shareholders, mostly extracted from the enterprise's earnings.

Required Rate

The minimum return an investor expects to achieve by investing in a project or purchasing an asset, often used in capital budgeting to evaluate potential investments.