A Nation Can Produce Two Products: Tanks and Autos

question 32

Multiple Choice

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities schedule. The marginal opportunity cost of the fourth unit of tanks is

• A) 4 units of tanks.
• B) 300 units of autos.
• C) 350 units of autos.
• D) 1,000 units of autos.

Understand the concept and computation of beta for individual stocks and portfolios.

Grasp the basic principles and assumptions of the Capital Asset Pricing Model (CAPM).

Understand the relationship between risk (including systematic and unsystematic) and expected return.

Distinguish between risk-free and risky assets.

---

Definitions:

Production Schedule Disruptions

Interruptions or alterations in the planned timeline for manufacturing goods, often leading to delays in delivery and increased costs.

Payable Turnover Ratio

A financial metric that measures how quickly a company pays off its suppliers by comparing net credit purchases to average accounts payable during a period.

Uncollected Balances

The total sum of outstanding payments or loans that have not yet been received by a bank or financial institution.

Sales Decrease

A decline in the volume or value of products or services sold by a company over a specific period.