Figure 2.3 Figure 2.3 Shows Various Points on Three Different Production Possibility

question 3

Multiple Choice

Figure 2.3

Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3. A movement from X to Y:

• A)could be due to a change in consumers' tastes and preferences.
• B)could occur because of an influx of immigrant labour.
• C)is the result of advancements in food production technology only, with no change in the technology for plastic production.
• D)is the result of advancements in plastic production technology only, with no change in food production technology.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends not guaranteed.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before dividends to common shareholders and typically lacks voting rights.

Flotation Costs

The financial outlay a corporation faces when it issues new securities, encompassing fees for underwriting, legal counsel, and the process of registration.

New Issues

Refers to securities that are offered to the public for the first time, either through an initial public offering (IPO) for stocks or a new bond issue.