Autos and Chemicals Are in Million of Units in the Following

question 126

Multiple Choice

Autos and chemicals are in million of units in the following production possibilities tables: Refer to the tables above. Suppose that each nation specialized in producing the product for which it has a comparative advantage, and the terms of trade were set at 3 units of chemicals for 1 unit of autos. In this case, Germany could obtain and consume a maximum combination of 8 million units of autos and:

• A) 12 million units of chemicals
• B) 24 million units of chemicals
• C) 36 million units of chemicals
• D) 48 million units of chemicals

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.

Dividend Yield

The dividend per share divided by the price per share, indicating how much a company pays out in dividends each year relative to its stock price.

Capital Gain

The profit from the sale of assets or investments when the sale price exceeds the purchase price.

Geometric Average Return

The average rate of return of an investment calculated by multiplying n variables and then taking the n-th root.