The Following Production Possibilities Schedule Shows the Quantities of Wheat

question 45

Multiple Choice

The following production possibilities schedule shows the quantities of wheat and rice that can be produced in Canada and India with one unit of equivalent resources. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Wheat } \\\text { (bushels) }\end{array} & \begin{array} { l } \text { Rice } \\\text { (bushels) }\end{array} \\\hline \text { Canada } & 13 & 5 \\\hline \text { India } & 6 & 13 \\\hline\end{array}\\\text { TABLE 33- } 2\end{array}$$
-Refer to Table 33- 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) wheat production would go up by 7 bushels.
• B) both wheat and rice production would go up by 7 bushels.
• C) wheat production would be decreased by 12 bushels.
• D) rice production would increase by 18 bushels.
• E) rice output would decrease by 8 bushels.

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Definitions:

Consolidated Financial Statements

Financial statements that aggregate the financial position and results of operations of a parent and its subsidiaries, presenting the economic activities as those of a single entity.

Asset Sold

The process of transferring ownership of a business resource, which could be tangible or intangible, from one entity to another, usually in exchange for cash or its equivalent.

Unrealized Gain

An increase in the value of an asset or investment that has not yet been sold and thus, the gain has not been realized as actual profit.

Consolidated Financial Statements

Financial statements that show the financial results and position of a parent company and its subsidiaries as if they were a single entity.