Which of the Following Statements Is True

question 103

Multiple Choice

Which of the following statements is true?

• A) The concept of opportunity costs cannot be illustrated within a PPF framework.
• B) If scarcity did not exist,neither would a PPF.
• C) All PPFs are downward-sloping straight lines.
• D) There are more attainable points than unattainable points in every PPF diagram.

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Definitions:

Spot Trades

Financial transactions involving the immediate exchange of commodities or securities for cash or another asset.

Trade Settlement

The process of transferring securities from the seller to the buyer and the corresponding payment from the buyer to the seller.

Required Return

The minimum expected return on an investment necessary for an investor to consider making that investment, considering its risk.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, commonly measured by the Consumer Price Index (CPI).