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https://www.science.edu/Acellus/curriculum/career-technical-education-courses/lesson-lists/Business%20Management%20Curriculum.pdf
Answer:
The correct answer is letter "D": smaller, community banks.
Explanation:
The Great Recession is the economic fall that occurred between 2007 and 2009 as a result of the housing bubble burst in the U.S. During this period many well-known firms such as <em>Chrysler, General Motors, </em>and <em>Lehman Brothers</em> filed for bankruptcy. However, not all the business experienced a downturn.
A study conducted by the <em>Federal Reserve Bank of St. Louis</em> (2013) indicates that 417 <em>banks and thrift institutions</em> failed between 2006 and 2011 but 702 <em>small community banks</em> reported total assets of around $10 billion by allowing individuals to benefit from loans. Banks and thrift institutions were too conservative in loans during the Great Recession which was interpreted in lower revenues.
Based on the coordinates of point x and those of point y on the linear production possibilities curve, the opportunity cost of producing one watch is 2 fewer clocks.
<h3>What is the opportunity cost of producing one watch?</h3>
The opportunity cost of producing one watch is the number of clocks that needs to be given up per watch.
This will therefore be the slope of the linear production possibilities curve which can be found as:
= (Y₂ - Y₁) / (X₂ - X₁)
Solving gives:
= (80 - 20) / (20 - 50)
= 60 / -20
= -2 clocks
This means that for every watch produced, there will be 2 clocks that will be foregone to make that watch.
In conclusion, the opportunity cost is 2 clocks.
Find out more on opportunity cost at brainly.com/question/481029.
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