Author Question: What does the vertical intercept of a production possibilities frontier represent? What will be ... (Read 112 times)

imanialler

  • Hero Member
  • *****
  • Posts: 539
What does the vertical intercept of a production possibilities frontier represent?
 
  What will be an ideal response?

Question 2

If the interest rate on student loans ________, students will ________.
 
  A) falls from 6 percent to 1 percent; not change their saving but will change their investment
  B) rises from 6 percent to 12 percent; increase their consumption before it becomes too expensive
  C) rises from 6 percent to 12 percent; increase their saving in order to pay back the loan sooner
  D) falls from 6 percent to 1 percent; increase their saving in order to pay back the loan sooner
  E) None of the above answers is correct.



k.lashomb

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

The vertical intercept is the maximum amount that can be produced if all available resources are dedicated to the production of the good or service measured on the vertical axis.

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

For a complete list of videos, visit our video library