Suppose a Primitive Economy Consists of Two Industries, Farm Products

question 15

Multiple Choice

Suppose a primitive economy consists of two industries, farm products and farm machinery. Suppose also that its technology matrix is ​ If surpluses of 97 units of farm products and 18 units of farm machinery are desired, find the gross production of each industry.
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• A)205 units of farm product, 60 units of machinery
• B)260 units of farm product, 60 units of machinery
• C)210 units of farm product, 55 units of machinery
• D)205 units of farm product, 55 units of machinery
• E)260 units of farm product, 270 units of machinery

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Definitions:

Inventories

Quantities of goods in stock that are held by a business for the purpose of sale or production.

Retrospective Adjustment

An accounting practice where prior period financial statements are adjusted to reflect changes in accounting policies or correction of errors as if the new policy had always been applied.

Financial Statements

Reports that provide an overview of a company's financial condition, performance, and cash flows.

Cumulative Effect

The total change in financial statement results over a period of time due to an accounting principle change or correction of an error.