![]() The London Interbank Offer Rate (LIBOR)ĭ. The yield on a constant maturity Treasury security of the same term B. The index rate to which the contract rate is tied is typically which of the following for commercial mortgages?A. Some commercial mortgages have adjustable, or floating, interest rates. In the sense that, in the period of inflation the taste and desires of consumers are not correctly influenced by the prices of goods and services, during inflation less of goods and services are purchased by consumers because inflation reduced their purchasing power. ![]() However, The production possibility curve cannot be used to explain the concept of inflation in an economy of a country. Investment : The production possibility curve is also used to explain when there is increase in investment in the country, in the sense that, investment occurs when more capital goods and fewer consumer goods are produced. Unemployment : The point inside the curve is used to indicate when the country is having unemployment or when such a country is having inefficient use of resources.Įconomic growth : The outward shift of the curve indicate that the country is having economic growth, it is used to show when there is an increase in output per head in an economy. Opportunity cost : This is cost of sacrificing one commodity for the other.This is the alternative forgone in order to produce that commodity.įull employment : The point on the curve is used to indicate when the country is having full employment or when the country is having an efficient use of resources The production possibility curve can be used to explain the following economic concept The production possibility curve is a analytical tool which explained the problem of making a choice and opportunity cost., it is used to explain that the cost of producing a particular commodity is the amount of another commodity that must be sacrificed. Donec aliquet.Production possibility curve is the locus of points showing the various combination of two commodities that can be produced using the available resources and the available technology. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Nam lacinia pulvinar tortor nec facilisis. Nam risus ante, dapibus a molestie consequat, ultrice sectetur adipiscing elit. Fusce dui lectus, congue vel laoreet ac, dictum vitae ctetur adipiscing elit. ![]() Nam risus ante, dapibus a molestie consesectetur adipiscing elit. ![]() Answer these two questions (a few sentences each): #2) Which point or points are considered efficient ones for society to produce with its existing resources and why?įor the toolbar, press ALT+F10 (PC) or ALT.FN+F10 [Mac)Ĭonsider the Production Possibilities Frontier (PPF) above which shows two possible outputs of a hypothetical economy - cars on the vertical axis (output 2) and laptops along the horizontal axis (output 1). #1) Can society currently produce at any point from A through D? Why or why not? Answer these two questions (a few sontoncos each): ![]() (output 2) and laptops along the horizontal axis (output 1). Remaining Time: 3 hours, 02 minutes, 28 seconds.Ĭonsider the Production Possibilities Frontier (PPF) above which shows two possible outputs of a hypothetical economy - cars on the vertical axis ![]()
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