The Figure Given Below Represents the PPC in Two Nations

question 62

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Money exchanges are more efficient than barter because:

• A)money exchanges do not require a double coincidence of wants.
• B)the government guarantees the value of money.
• C)money usually has an intrinsic value.
• D)money is backed by a physical commodity.
• E)opportunity costs are higher with barter trades.

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Definitions:

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.

Price-earnings Ratio

A valuation metric for a company, calculated by dividing the market price per share by the earnings per share.

Net Income

The amount of profit left over after all expenses, taxes, and costs have been subtracted from total revenue.

Retained Earnings

The part of net earnings a corporation keeps instead of paying out to its shareholders in the form of dividends.