-Using Figure 1.4 You Can Tell That

question 46

Multiple Choice

-Using Figure 1.4 you can tell that

• A)there is increasing opportunity cost.
• B)there is unemployment.
• C)there is constant opportunity cost.
• D)the technology does not exist to produce 9 units of soda and 1 unit of pizza.

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Definitions:

Dollar-Denominated Deposits

Bank deposits made in U.S. dollars rather than the local currency, often used by investors to avoid foreign exchange rate risk.

Foreign Bank

A bank based in a country other than the country it provides services in, often subject to both domestic and international banking regulations.

Value-Weighted Index

An index in which the weight of each constituent is proportional to its market value, emphasizing larger companies.

Price-Weighted Index

A stock market index in which each company's influence on the index's performance is proportional to its stock price.