Below Are the Production Possibilities (Without Trade)and the Trading Possibilities

question 101

Multiple Choice

Below are the production possibilities (without trade) and the trading possibilities (with free trade) for Canada.

-Refer to the graph above to answer this question.Assuming no trade,what is the opportunity cost of 1 more aircraft?

• A)0.0167 railcars.
• B)16.67 railcars.
• C)60 railcars.
• D)100 railcars.
• E)6,000 railcars.

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Definitions:

Basic Earnings Per Share

A measure of a company's profitability on a per-share basis, calculated by dividing net income by the number of outstanding ordinary shares.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number.

Short-term Creditor

A creditor that provides loans or credit to a business or individual with an expectation of repayment within a short period, typically less than a year.

Liquidity

The ability of an asset to be quickly converted into cash without losing its value.