Exhibit 2-18 Production Possibilities Curves in Exhibit 2-18, the Production

question 93

Multiple Choice

Exhibit 2-18 Production possibilities curves In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This country:

• A)is producing the same number of capital goods in both years.
• B)is producing the same number of consumption goods in both years.
• C)has shown no growth between Year X and Year Y.
• D)has higher unemployment in Year X than in Year Y.
• E)has higher unemployment in Year Y than in Year X.

Comprehend the implications of changes in the equilibrium interest rate on the economy.

Understand the concepts of future value, present value, and compound interest in personal finance.

Recognize the role and effects of usury laws in the financial market.

Grasp the significance of real interest rates in investment decisions.