Which of the Following Is True About the Combination of Mops

question 131

Multiple Choice

Which of the following is true about the combination of mops and brooms represented by point E in Figure 1.3 and using PP1?

• A)Point E is efficient now.
• B)Point E is attainable if this economy uses more of its available resources.
• C)Point E is unattainable if this economy becomes more efficient.
• D)Point E is attainable only if more resources become available or technological advances are made.Any point outside the production possibilities curve cannot be attained without growth in resources or better technology.

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Definitions:

Commitment Fee

A charge imposed by a lender on a borrower for not utilizing a credit line or for funds that have not been disbursed.

Revolving Credit

A flexible credit line that allows individuals or businesses to borrow, repay, and borrow again up to a certain limit, commonly seen in credit cards and lines of credit.

Interest Expense

It refers to the cost incurred by an organization or individual for borrowing funds, typically represented as a yearly interest rate applied to the loan's principal amount.

Prime Rate

The interest rate that banks charge their most credit-worthy customers, often used as a benchmark in lending rates.