In the Specific Factors Model, a Country's Production Possibility Frontier

question 13

Multiple Choice

In the specific factors model, a country's production possibility frontier is ________ because of ________.

• A) a straight line; diminishing marginal returns
• B) a curved line; diminishing marginal returns
• C) a straight line; constant marginal returns
• D) a curved line; constant marginal returns
• E) a curved line; a limited supply of labor

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Definitions:

Expected Rate of Return

The anticipated amount of profit or loss an investor expects to achieve on an investment.

Interest Rate

The Interest Rate is the percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Expected Rate of Return

The anticipated return on an investment, considering both the probability and the amount of potential returns.