In the Two­sector (Manufacturing and Agriculture)

question 76

Multiple Choice

In the two­sector (manufacturing and agriculture)
Specific­factors model, the slope of the production
Possibilities curve equals:

• A)the ratio of marginal products of capital in the two sectors.
• B)the ratio of marginal products of labor utilized in the two sectors.
• C)the ratio of outputs produced in the two sectors.
• D)the ratio of land and capital utilized in the two sectors.

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Definitions:

Production Efforts

The exertion of labor and use of resources by a company towards the manufacturing of goods.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.

Revenue

The total amount of money generated from the sale of goods, services, or any other use of capital or assets, before any expenses are deducted.

Inventory Level

The number of units of products or materials that are kept in stock by a business.