The Following Figure Shows the Production Possibilities Curve for a Software

question 199

Multiple Choice

The following figure shows the production possibilities curve for a software engineer who has to divide her available time between producing computer programs and Web sites.

-Refer to the figure above.If the engineer spends her entire time producing computer programs,how many computer programs can she produce?

• A) 12
• B) 30
• C) 45
• D) 50

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Definitions:

January Effect

A seasonal increase in stock market prices that typically occurs during the month of January, often attributed to the buying of stocks that were sold at the end of the previous year for tax purposes.

P/E Effect

The P/E effect is a market anomaly observed where stocks with lower Price-to-Earnings (P/E) ratios tend to outperform those with higher P/E ratios over time.

Strong-form Efficiency

A market hypothesis suggesting that prices fully reflect all available information, both public and private, making it impossible for investors to consistently achieve higher returns.

Semistrong-form Efficiency

A hypothesis that asserts the market price of securities already reflects all publicly available information, making it hard to achieve higher returns.