Which of the Following Is a Correct Statement About Production

question 106

Multiple Choice

Which of the following is a correct statement about production possibilities frontiers?

• A)An economy can produce only on the production possibilities frontier.
• B)An economy can produce at any point inside or outside a production possibilities frontier.
• C)An economy can produce at any point on or inside the production possibilities frontier,but not outside the frontier.
• D)An economy can produce at any point inside the production possibilities frontier,but not on or outside the frontier.

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Definitions:

NPV

NPV - Net Present Value, a financial metric used to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.

Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date.

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.

Expiration Date

The date on which an option, right, or obligation ends or expires.