This Table Shows How Much Cotton and Cocoa Can Be

question 35

Multiple Choice

This table shows how much cotton and cocoa can be produced in Peru and Brazil with one unit of equivalent resources.
TABLE 32-4
-Refer to Table 32-4.If one unit of resources is shifted from cotton to cocoa beans in Brazil,and one unit of resources is shifted from cocoa beans to cotton in Peru,world output would increase by

• A)2 bales of cotton.
• B)1 bale of cotton and 2 bushels of cocoa beans.
• C)6 bushels of cocoa beans.
• D)3 bales of cotton and 10 bushels of cocoa beans.
• E)2 bales of cotton and 1 bushel of cocoa beans.

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Definitions:

Business-specific Risk Factors

Unique risks that affect a particular company or industry's operational efficiency and profitability.

Beta Coefficient

A numerical value that measures the volatility of a stock or portfolio in comparison to the overall market.

Historical Relationship

A connection or correlation between variables or events over a period of time, often analyzed to predict future trends.

Risk Tolerance

The degree of variability in investment returns that an investor is willing to withstand.