2. A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms: Yards of Carpets (Millions) Carpet Looms u(Thousand}) 50 40 28 10 22 34 19 46 60 These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. a. Using data in the table, graph the ppf (with carpet on the vertical axis) b. What happens to the opportunity cost of carpets measured in number of looms-as carpet production increases from 0 to 10 Million yards, from 10 to 22 Million yards, from 20 to 30 Million yards, and so on? c. If this country chooses to produce both carpets and looms, what will happen to the ppf over time? Why?

2. A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms: Yards of Carpets (Millions) Carpet Looms u(Thousand}) 50 40 28 10 22 34 19 46 60 These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. a. Using data in the table, graph the ppf (with carpet on the vertical axis) b. What happens to the opportunity cost of carpets measured in number of looms-as carpet production increases from 0 to 10 Million yards, from 10 to 22 Million yards, from 20 to 30 Million yards, and so on? c. If this country chooses to produce both carpets and looms, what will happen to the ppf over time? Why?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The table below lists all of the investment opportunities available for the businesses of a small island country. Instructions: In part a, round your answers to 1 decimal place. In part b, enter your answer as a whole number. a. Calculate the expected rate of return for each project. Fill in the values in the table. Project LA A B C D E F Project Cost, Millions million $15 9 27 44 7 16 Expected Net Revenue, Millions $16 10 28 47 7.5 17 b. If the nominal interest rate for investment borrowing is 12 percent and the expected inflation rate is 5 percent, what will be this country's level of investment? Rate of Return, Percent
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