The Statement "Resources Employed in Producing X Are Better Suited

question 110

Multiple Choice

The statement "Resources employed in producing X are better suited to making Y" is another way of saying

• A)the production possibilities frontier is "bowed out."
• B)the production possibilities frontier is a straight line.
• C)the production possibilities frontier is "bowed in."
• D)resources are unproductive.
• E)resources have no opportunity cost.

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Definitions:

Futures Contract

An agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Underlying Asset

An asset (such as a stock, bond, commodity, or currency) upon which a derivative instrument, such as an option, is based.

Interest Rate Futures

Financial futures contracts that obligate the buyer to purchase an asset (like Treasury bills) with a fixed interest rate at a future date.

Federal Funds

Short-term funds transferred between financial institutions, typically overnight, at an interest rate set by the Federal Reserve in the United States.