The Slope of a Production Possibilities Frontier

question 23

Multiple Choice

The slope of a production possibilities frontier

• A)has no economic relevance or meaning.
• B)is always constant.
• C)is always varying.
• D)measures the opportunity cost of producing one more unit of a good.

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Definitions:

Present Value

The valuation today of an asset or cash flow that is received in the future, taking into account a specific interest rate.

Net Present Value Profile

A graphical representation of the relationship between an investment’s Net Present Values and various discount rates.

Rates of Return

The gains or losses on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Graphical Representation

A visual way of presenting data, information, or statistical results using charts, graphs, or other imagery.