Suppose That a Worker in Country a Can Make Either

question 49

Multiple Choice

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country 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:

Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating how much and how quickly the value of an investment, market, or market sector changes.

Geometric Average Return

The average rate of return of a set of values calculated by multiplying the n values and taking the n-th root.

Multi-year Period

A timeframe that extends beyond a single year, often used in financial planning, projections, and analysis.

Compound Return

The rate of return on an investment that includes reinvesting the gains to generate additional earnings over time.