Moving Between Two Points on a PPF,a Country Gains 8

question 229

Multiple Choice

Moving between two points on a PPF,a country gains 8 desktop computers and forgoes 4 laptop computers.The opportunity cost of 1 desktop computer is

• A) 4 laptops.
• B) 8 desktops.
• C) 1 desktop.
• D) 2 laptops.
• E) 1/2 of a laptop.

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Definitions:

Inflation

The rate at which prices for commodities and services overall ascend, depleting the power of purchase.

Common Shareholders' Equity

The amount of money that would be distributed to common stockholders if all assets were liquidated and all debts paid off.

Fundamental Analysts

Financial experts who evaluate investments based on fundamental factors such as earnings, dividends, and the financial health of companies.

Profitability

The financial metric that measures the degree to which a company or project generates profit compared to its revenues, costs, or investments.