The Following Production Possibilities Schedule Shows the Quantities of Wheat

question 49

Multiple Choice

The following production possibilities schedule shows the quantities of wheat and rice that can each be produced in Canada and India with one unit of equivalent resources. TABLE 32-2 Refer to Table 32-2.If Canada were to transfer one unit of resources from rice to wheat production and if one unit of Indian resources were switched from wheat to rice production,

• A)total rice production would increase by 8 bushels.
• B)total wheat production would increase by 13 bushels.
• C)total rice production would increase by 13 bushels.
• D)total wheat production would increase by 8 bushels.
• E)both total wheat and total rice production would go up by 13 bushels.

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of the other.

Supply And Demand

Economic model of price determination in a market, where the quantity of a good supplied by producers and the quantity demanded by consumers depend on the price level.

Currencies

Systems of money in common use, particularly in a nation or economic region, serving as a medium of exchange.

Governments

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