The Following Production Possibilities Schedule Shows the Quantities of Wheat

question 20

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 wheat production would increase by 7 bushels.
• B)total rice production would increase by 18 bushels.
• C)total wheat production would decrease by 13 bushels.
• D)total rice output would decrease by 8 bushels.
• E)both total wheat and total rice production would increase by 7 bushels.

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Definitions:

Retained Earnings

The portion of a company's profit kept in the business after dividends are paid, used for reinvestment or paying down debt.

New Equity

The issuance of additional shares of stock by a company to investors, typically to raise capital for business expansion or operational needs.

Board of Directors

The board of directors is a group of individuals elected by shareholders to oversee the management and governance of a corporation.

Issue Dividends

The process by which a company distributes a portion of its earnings to its shareholders.