A Major Earthquake Occurs in the Central Part of the United

question 202

Multiple Choice

A major earthquake occurs in the central part of the United States.What impact would this have on the nation's production possibilities frontier and why?

• A) It would shift outward because unemployment would be reduced.
• B) Nothing would happen because the nation would still have the same capabilities.
• C) A tradeoff would occur to replace the resources and goods destroyed.
• D) It would shift inward because some of the nation's resources, such as capital and labor, would be destroyed.
• E) It would not shift because people would get to work to replace any capital that was destroyed.

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Definitions:

Compound Financial Instrument

A financial instrument that has characteristics that are a combination of a financial asset, financial liability or equity instrument.

Convertible Notes

Debt instruments that can be converted into a specified number of shares of the issuing company at certain times during its life, usually at the discretion of the note holder.

Liability

A present obligation of the entity to transfer an economic resource as a result of past events.

Equity

The value of an owner's interest in a property or business, after subtracting liabilities.