-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 20

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Measuring food on the horizontal axis,the joint production possibility frontier

• A) will have a slope of -3/4 over the entire frontier.
• B) will have a slope of -2 when less than 20 units of food are produced.
• C) will have a slope of -1 when less than 20 units of food are produced.
• D) will have a slope of -1/2 when less than 20 units of food are produced.

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Definitions:

Net Income

Net Income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Property, Plant

Assets that are used in operations and have a useful life longer than one year, such as buildings, machinery, and equipment.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired.

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.