This Table Shows How Much Cotton and Cocoa Can Be

question 68

Multiple Choice

This table shows how much cotton and cocoa can be produced in Peru and Brazil with one unit of equivalent resources. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Cotton } \\\text { (bales) }\end{array} & \begin{array} { l } \text { Cocoa Beans } \\\text { (bushels) }\end{array} \\\hline \text { Peru } & 2 & 4 \\\hline \text { Brazil } & 1 & 6 \\\hline\end{array}\\\text { TABLE 33- } 4\end{array}$$
-Refer to Table 33- 4. If one unit of resources is shifted from cotton to cocoa beans in Brazil, and one unit of resources is shifted from cocoa beans to cotton in Peru, world output would increase by

• A) 1 bale of cotton and 2 bushels of cocoa beans.
• B) 3 bales of cotton and 10 bushels of cocoa beans.
• C) 2 bales of cotton and 1 bushel of cocoa beans.
• D) 2 bales of cotton.
• E) 6 bushels of cocoa beans.

---

Definitions:

Change In Accounting Principle

An adjustment in the way a company recognizes, measures, presents, or discloses financial information due to a change in accounting policy.

Continuing Operations

The parts of a business expected to continue operating in the foreseeable future, as opposed to segments being discontinued or sold.

Newly Adopted Principle

A recently implemented accounting guideline that a company starts following, which can affect its financial reporting.

Extraordinary Event

An event or transaction that is distinct from the ordinary and typical activities of a business and is both unusual and infrequent.