There are 8 pesos to the dollar, so multiply 1200 by 8 to get the number of pesos. A bushel costs 12 pesos, so divide by 12 to get 800 bushels. 

If a nation has an excellent return on investments, that makes investing in that nation more appealing to foreign and domestic investors. Foreigners will exchange their currencies for the currency of the nation with a high rate of return. Domestic investors may take their investments out of foreign markets and invest domestically to take advantage of the high rate of return. This leads to a high demand for the demand currency, meaning people are willing to pay more to recieve that currency. This causes the currency to appreciate in value. 

Because an exchange rate is a fluid marker of the equivalent value of two different currencies, two different measures of an exchange rate are necessary. When a transaction is necessary in the moment, the current exchange rate, or a present marker of relative value between currencies, is used. When the transaction is made but scheduled for exchange on a future date, the forward exchange rate, or a projection of future relative value based on recent trends, is used as the exchange rate.

The definition of the opportunity cost is the value of the highest valued alternative that is foregone in the production of a good. It is not the sum of all the alternative options, but rather only the most highly valued one.  

The Production Possiblity Frontier is typically bowed outward with respect to the origin, reflecting the law of increasing opportunity costs, which states that as production of a particular good or service increases, costs associated with producing that good or service increase too. 

The correct answer, therefore, is "The Production Possibility Frontier is bowed outward with respect to the origin." The other answer choices are incorrect because they do not accurately account for the law of increasing opportunity costs.

The bowed-outward shape of the PPF represents increasing opportunity costs of production because it indicates that it is becoming more and more costly to produce the good on the x-axis. This higher cost is represented by the increasingly steep slope of the PPF. The slope of the PPF corresponds to the costs of producing an extra unit of X. The steeper the slope, the steeper the cost.  

The increasing opportunity costs as you move along a PPF are a result of the resources that are more specialized in the production of one good being used to produce the other good. These resources become less and less productive leading to higher costs. If the two goods are cars and burgers, the more burgers you start to make, the more car mechanics you have to start using to make these burgers (since your resources are fixed). The less productive car mechanics (that is, in the production of burgers) will lead to higher production costs. This is due to the fact that they will earn the same hourly wage as the burger specialists, but produce fewer burgers per hour. The cost of burger production progressively goes up. 

 would be the most appropriate point since it has a higher quantity of capital goods than point . Capital goods have a greater impact on the long term growth of an economy.  

Both point  and  are along the PPF, so they are both productively efficient. For this reason, they represent identical unemployment rates. Additionally there is nothing to convince us that labour is necessarily the primary resource in the production of consumer goods in this economy. 

At point , there is allocative efficiency because at this point the society is producing the right mix of goods (supply (marginal cost) of the consumer good matches its demand (marginal benefit])). Point  is on the PPF and as such is also productively efficient since all resources are being used for production at all points on the PPF.