Figure 2-2 -Which of the Following Statements About Movement Along the PPC

question 110

Multiple Choice

Figure 2-2
-Which of the following statements about movement along the PPC in Figure 2-2 is FALSE?

• A)Society cannot have more of both goods at the same time.
• B)An additional computer can be produced only if fewer televisions are produced.
• C)The trade-off between computers and televisions is not constant.
• D)There are no opportunity costs involved in choosing one point on the curve over all other points.

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Definitions:

GIC

A Guaranteed Investment Certificate (GIC) is a type of Canadian investment that offers a guaranteed return over a fixed period.

Monthly Compounded

Interest on an investment or loan is calculated monthly and added to the principal, allowing the interest to earn interest in subsequent months.

Nominal Rate

The stated interest rate of an investment or loan, not accounting for compounding or inflation effects.

Annual Rate

The interest rate for a period of one year, often used to compare the yearly interest between financial products without compounding.