Refer to the Information Provided in Table 33

question 232

Multiple Choice

Refer to the information provided in Table 33.1 below to answer the question(s) that follow.
Table 33.1
-Refer to Table 33.1. Before specialization, Mexico produces 120 bushels of oranges and 80 bushels of bananas, and Guatemala produces 40 bushels of oranges and 20 bushels of bananas. After specialization, the increase in orange production is

• A) 10 bushels of oranges.
• B) 20 bushels of oranges.
• C) 25 bushels of oranges.
• D) 40 bushels of oranges.

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Definitions:

Maturity Value

The amount payable to the investor at the end of a fixed-term investment, including both the principal and the interest.

Compounded Semi-Annually

This refers to the process of calculating interest on the initial principal and the accumulated interest over two periods within a year.

11%

11% typically refers to an interest or annual rate, indicating that 11 percent of the principal amount will be paid in interest over a year.

Nominal Rate

The promoted or declared rate of interest on a loan or investment, excluding the impacts of compounding and inflation.