Suppose That in a PPF Graph,wheat Is on the Vertical

question 236

Multiple Choice

Suppose that in a PPF graph,wheat is on the vertical axis and jets are on the horizontal axis.Moving down along the PPF,the

• A) number of jets increases and the opportunity cost of jets increases.
• B) amount of wheat increases and the opportunity cost of wheat increases.
• C) number of jets increases and the opportunity cost of jets decreases.
• D) amount of wheat increases and opportunity cost of wheat decreases.
• E) opportunity cost of jets and wheat both increase.

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Definitions:

P/E Ratio

The price-to-earnings ratio, a valuation metric comparing the current share price of a company to its per-share earnings.

ROE

Return on Equity, a financial ratio that measures a company's profitability relative to the equity.

Market-To-Book-Value Ratio

A financial ratio used to compare a company's current market price to its book value, indicating how much investors are willing to pay above the net asset value.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, assessing efficiency in asset use.