Author Question: If Urban Outfitters borrows 25 million from a bank to finance the construction of a new store, this ... (Read 105 times)

luminitza · **on:** Jun 29, 2018

If Urban Outfitters borrows 25 million from a bank to finance the construction of a new store, this is an example of

A) a bond market transaction. B) a stock market transaction.
C) indirect finance. D) direct finance.

Question 2

Why is opportunity cost a ratio?

What will be an ideal response?

Missbam101 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C

Answer to Question 2

The slope of the PPF is a ratio that expresses the quantity of lost production of the good on the y-axis to the increase in the production of the good on the x-axis moving downward along the PPF. The steeper the slope, the greater ratio, and the greater is the opportunity cost of increasing the output of the good measured on the horizontal axis.