Suppose an Ocean Liner Sinks and Its Passengers Are Stranded

question 71

Multiple Choice

Suppose an ocean liner sinks and its passengers are stranded on a lush tropical island. Which of the following could most likely be used as money in the economy that develops among the survivors?

• A) the life jackets they put on when leaving the ship
• B) the beads from the necklaces that were given out as party favors on the night the ship sank
• C) the leaves of the various tropical trees on the island
• D) the fish in the sea around the island
• E) the sand on the island's beaches

Recognize points of efficiency, inefficiency, and unemployment on the PPF.

Explain the role of technology and economic growth in shifting the PPF.

Describe the relationship between specialization, division of labor, and the PPF.

Analyze how changes in resource allocation affect production outcomes on the PPF.

---

Definitions:

Partnership Form

A type of business entity where two or more individuals share ownership and the responsibilities of running the business.

Limited Liability

A legal structure that limits the financial liability of the owners of a business to the amount of money they have invested in the business.

Continuous Existence

A characteristic of corporations that allows them to outlast the lives of their individual members or owners, enabling ongoing operations over time.

Transferring Ownership

The process of legally moving the title of an asset or property from one entity or individual to another.