Suppose That a Worker in Country a Can Make Either

question 16

Multiple Choice

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.Suppose Country B's population of workers increased to 600.Which of the following statements is now true?

• A) Country B's production possibilities curve has rotated out for only production of iPods.
• B) Country B's production possibilities curve has shifted straight out.
• C) Country B's production possibilities curve has shifted straight in.
• D) Country B's production possibilities are now more limited because of crowding from having more workers.

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Definitions:

Risky Stock

Stocks with a high degree of risk, typically characterized by high volatility and potential for significant loss or gain.

Mean Distribution

A statistical term describing the central tendency of a probability distribution, often interpreted as the average of a set of values.

Portfolio Theory

A framework for constructing a portfolio of assets aimed at maximizing return for a given level of risk.

Business-Specific Risk

Variation in the return on a stock investment caused by things that affect specific businesses or industries.