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:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level or profits.

Interest Rate

The cost, represented as a percentage of the principal, incurred by a borrower for the utilization of assets from a lender.

ROE

Return on Equity, a measure of a corporation's profitability by calculating how much profit a company generates with the money shareholders have invested.

Real Income

The purchasing power of an individual's or household's income, accounting for inflation.