Exhibit 2-6

question 124

Multiple Choice

Exhibit 2-6
-In Exhibit 2-5, if society moves from point c to point d, society

• A)gains 100 socks
• B)loses 30 mufflers
• C)is worse off after the change in production
• D)is not operating efficiently
• E)experiences some unemployment of resources

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Definitions:

Current Yield

The annual income (interest or dividends) from an investment, expressed as a percentage of the current price of the investment.

Trading

The act of buying, selling, or exchanging financial assets like stocks, bonds, or commodities in financial markets.

Coupon Bond

A debt security that pays the holder a fixed interest rate (coupon) over a specified period until maturity, at which point the face value is repaid.

Current Yield

The annual income (interest or dividends) earned from an investment, expressed as a percentage of the current market price.