On a Production Possibilities Frontier,500 Pounds of Apples and 1,200

question 185

Multiple Choice

On a production possibilities frontier,500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier,300 pounds of apples and 1,300 pounds of bananas can be produced.Between these points,what is the opportunity cost of producing a pound of bananas?

• A) 2 pounds of bananas
• B) 200 pounds of apples
• C) 2 pounds of apples
• D) 0.5 a pound of apples
• E) 12/5 = 2.4 pounds of apples

Identify factors that stimulate or slow down investment in varying interest rate environments.

Appreciate the implications of risk and uncertainty in making investment decisions and assess the need for a risk premium.

Understand the basic concept of interest rates and how they are calculated.

Define and distinguish between different financial markets and institutions.