The history of the textile industry raises important questions for economic policy

Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%. What is the expected rate of return on the stock?

A) -40% B) -20% C) 8% D) 16%

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.