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:

Net Operating Income

A measure of a company's profitability, calculated as gross income minus operating expenses excluding interest and taxes.

Contribution Format

An income statement format that separates variable costs from fixed costs, emphasizing the contribution margin.

Income Statement

A financial statement that reports a company's financial performance over a specific period, showing revenue, expenses, and net income or loss.

Contribution Margin Ratio

A financial metric that shows what percentage of sales revenue is available to cover variable costs and contribute to fixed costs and profits.