Suppose That a Worker in Econia Can Make Either 10

question 34

Multiple Choice

Suppose that a worker in Econia can make either 10 iPods or 5 tablets each year.Econia has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.A bundle of goods that Country B could potentially make would be:

• A)(400 iPods,2,000 tablets).
• B)(200 iPods,1,500 tablets).
• C)(300 iPods,450 tablets).
• D)(400 iPods,1 tablet).

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Definitions:

Monthly Payments

Regular payments made once a month, commonly in the context of loans, rent, or other agreements.

Present Value

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annuity

A financial instrument providing a steady series of payments to a person, mainly utilized as a source of income for people in retirement.

Compounded Monthly

The method of calculating interest where the interest earned is added to the principal at the end of each month, leading to interest on interest in subsequent months.