The Production Possibility Curve Is Bowed Outward from the Origin

question 196

Multiple Choice

The production possibility curve is bowed outward from the origin because of:

• A) the law of increasing opportunity costs.
• B) the finite nature of the resource base.
• C) inefficiency.
• D) improper output mix.
• E) unemployment.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.

Annual Coupon

The yearly interest payment issued to bondholders, typically expressed as a percentage of the bond’s face value.

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the market, influencing how much borrowers pay for loans and investors earn on deposits.

Annual Coupon

The yearly interest payment paid to a bond's holders, typically expressed as a percentage of the bond's face value.