The Following Production Possibilities Schedule Shows the Quantities of Soybeans

question 85

Multiple Choice

The following production possibilities schedule shows the quantities of soybeans and oil that can be produced in Canada and Mexico with one unit of equivalent resources. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Soybeans } \\\text { (bushels) }\end{array} & \begin{array} { l } \text { Oil } \\\text { (barrels) }\end{array} \\\hline \text { Canada } & 60 & 10 \\\hline \text { Mexico } & 24 & 8 \\\hline\end{array}\\\text { TABLE 33- } 3\end{array}$$
-Refer to Table 33- 3. If Canada were to transfer half a unit of resources from oil to soybeans and Mexico were to transfer one unit of resources from soybeans to oil, the effect on the total output of the two countries would be as follows:

• A) Soybean production would increase by 6 bushels and oil production would increase by 3 barrels.
• B) oil production would increase by 8 barrels.
• C) Soybean production would increase by 36 bushels and oil production would decrease by 2 barrels.
• D) Soybean production would increase by 6 bushels and oil production would increase by 2.02 barrels.
• E) Soybean production would increase by 30 bushels.

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