Table 3-6 Assume That Hilda and Carlos Can Switch Between Producing Quilts

question 179

Multiple Choice

Table 3-6
Assume that Hilda and Carlos can switch between producing quilts and producing dresses at a constant rate.

-Refer to Table 3-6.We could use the information in the table to draw a production possibilities frontier for Hilda and a second production possibilities frontier for Carlos.If we were to do this,measuring quilts along the horizontal axis,then

• A) the slope of Hilda's production possibilities frontier would be -3 and the slope of Carlos' production possibilities frontier would be -2.
• B) the slope of Hilda's production possibilities frontier would be -0.33 and the slope of Carlos' production possibilities frontier would be -0.5.
• C) the slope of Hilda's production possibilities frontier would be 0.33 and the slope of Carlos' production possibilities frontier would be 0.5.
• D) the slope of Hilda's production possibilities frontier would be 3 and the slope of Carlos' production possibilities frontier would be 2.

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Definitions:

Cumulative

Describes something that increases in quantity, degree, or force by successive additions.

Market Rate of Return

The average rate of return on investments expected by investors in the market.

Annual Dividend

The total dividend payment a company decides to distribute to its shareholders annually.

Share

Represents an ownership portion in a corporation and entitles the holder to a part of the company's profits and assets.