-Refer to Exhibit 2-2

question 20

Multiple Choice

-Refer to Exhibit 2-2.If PPF₂ is the relevant production possibilities frontier,then point __________ is productive efficient.

• A) B
• B) D
• C) I
• D) F
• E) both b and d

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Definitions:

First Mortgage

A primary lien on a property that takes precedence over all other mortgages or liens, typically related to the original loan used to purchase the property.

Second Mortgage

A loan taken out on a property that is already mortgaged, with the second loan being subordinate to the first.

Mortgage Rate

The interest rate charged by a lender for a loan used to purchase a property.

Average Cost

The total cost of production divided by the number of units produced, representing the cost per unit.