Figure 2.7 Figure 2.7 Shows the Production Possibility Frontiers for Pakistan and Possibility

question 38

Multiple Choice

Figure 2.7

Figure 2.7 shows the production possibility frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews.
-Refer to Figure 2.7. What is the opportunity cost of producing 1 kilogram of cashews in Pakistan?

• A)3/8 of a bolt of cotton
• B)5/8 of a bolt of cotton
• C)1 3/5 bolts of cotton
• D)240 bolts of cotton

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Definitions:

Confidence Index

An indicator that measures the confidence or optimism that investors feel about the overall financial market or the economy.

TRIN

A market indicator used to predict price movements in the stock market, based on the ratio of advancing to declining stocks.

Support Level

In technical analysis, this refers to a price level below which a security or market tends not to fall.

Primary Trend

A long-term movement in stock market prices, typically lasting for a year or more, indicating the general direction of the market.