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:

Common Stock

Common stock represents shares of ownership in a corporation, giving holders voting rights and a residual claim on corporate earnings in the form of dividends.

After-Tax Interest Expense

The cost of borrowing after adjusting for the effects of taxes, calculated by subtracting the tax savings from the total interest expense.

Basic Earnings Per Share

A measure of a company's profitability that divides net income by the number of outstanding common shares.

Noncontrolling Interest

The share of equity in a subsidiary not held by the parent company, reflecting the interest that is not controlled by the majority shareholder.