Below Is the Productivity Per Worker (Kilos Per Day)in the Wheat

question 160

Multiple Choice

Below is the productivity per worker (kilos per day) in the wheat and bean industries of Caledonia and Ibrox.The working population in each country is 16 million people.

-Refer to the data above to answer this question.What is the cost of a kilo of wheat in Caledonia?

• A)0.4 beans.
• B)2 beans.
• C)0.4 wheat.
• D)2.5 beans.

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Definitions:

Money Supply

The cumulative total of all money assets within an economy at a particular point in time.

Constant Rate

A fixed rate of change, meaning something increases or decreases at a steady and unvarying speed or value over time.

Rational Expectations

The economic theory that individuals make decisions based on their rational outlook, available information, and past experiences.

Stabilization Policy

Economic strategies and actions taken by a government or central bank to stabilize an economy, aiming to reduce fluctuations in the business cycle.