If He Devotes All of His Available Resources to Cantaloupe

question 105

Multiple Choice

If he devotes all of his available resources to cantaloupe production,a farmer can produce 120 cantaloupes.If he sacrifices 1.5 watermelons for each cantaloupe that he produces,it follows that

• A)if he devotes all of his available resources to watermelon production,then he can produce 80 watermelons.
• B)he cannot have a comparative advantage over other farmers in producing cantaloupes.
• C)his opportunity cost of one watermelon is 2/3 of a cantaloupe.
• D)his production possibilities frontier is bowed-out.

Explain the role of insurance companies in risk management.

Understand speculative bubbles and market irrationality.

Understand risk aversion and its implications for investment decisions.

Recognize the importance of diversification in reducing investment risk.

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Definitions:

Diversity

The practice or quality of including or involving people from a range of different social and ethnic backgrounds and of different genders, sexual orientations, etc.

Charter

A formal document outlining the rights, objectives, rules, strategies, or functions of a city, organization, or other entity.

Demonstrably Justified

Clearly supported or proven to be reasonable or necessary under the circumstances.

Free And Democratic Society

A type of society where individuals have the liberty to express their opinions, enjoy rights and freedoms, and participate in fair and open elections to choose their leaders.