The Negative Slope of the Production Possibilities Frontier Represents the Idea

question 168

Multiple Choice

The negative slope of the production possibilities frontier represents the idea

• A) that free lunches are possible.
• B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another.
• C) of unemployment.
• D) of inefficient production.
• E) that prices rise as less is produced.

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Definitions:

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments by finding the interest rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Projects

Specific tasks or programs undertaken to achieve a goal, often characterized by defined scope, resources, and timeframe.

Average Accounting Return

A measure used to evaluate the profitability of investments, calculated as the average net income of a project divided by its average book value.

Necessary Information

Essential data or facts required to complete a task, make an informed decision, or solve a problem.