If the Economy Is Producing at Point a on Its

question 38

Multiple Choice

If the economy is producing at point a on its production possibility frontier, then

• A) all of its capital is used, but not efficiently.
• B) all of the country's capital is used for one product.
• C) all of the country's workers are employed.
• D) all of the country's workers are specialized in one product.
• E) all of the country's exports are produced in equal amounts.

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Definitions:

Investment Company

A corporation or trust engaged in the business of investing the pooled capital of investors in financial securities.

Bond Certificate

A legal document that indicates the name of the issuer, the face value of the bonds, the contractual interest rate, and maturity date of the bonds.

Conversion Feature

An option in some financial instruments, such as bonds, that allows the holder to convert the instrument into other securities, typically shares of the issuing company, under specified conditions.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits via dividends.