Figure 2-3 -Refer to Figure 2-3.Sergio Vignetto Raises Cattle and Llamas on Cattle

question 252

Multiple Choice

Figure 2-3

-Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-3 represent his production possibilities frontier that displays increasing opportunity costs?

• A)Graph A
• B)Graph B
• C)Graph C
• D)either Graph A or Graph C
• E)either Graph B or Graph C

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Definitions:

Zero-Coupon Bonds

Bonds that do not pay periodic interest and are sold at a discount from their face value, with the full face value being repaid at maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until the date of its maturity, expressed as an annual rate.

Zero-Coupon Bonds

Bonds that do not pay interest during their lifetime but are issued at a discount to their face value, thus generating profit at maturity.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.