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The Figure Given Below Shows the Production Possibility Curves for Canada

question 42

Multiple Choice

The figure given below shows the production possibility curves for Canada (AB) and the Rest of the World (CD) . Suppose Canada begins to trade with the Rest of the World. If in the international market 1 bushel of corn is exchanged for 1 liter of maple syrup, Canada will produce _____ bushels of corn and the Rest of the World will produce _____ liters of maple syrup. The figure given below shows the production possibility curves for Canada (AB)  and the Rest of the World (CD) . Suppose Canada begins to trade with the Rest of the World. If in the international market 1 bushel of corn is exchanged for 1 liter of maple syrup, Canada will produce _____ bushels of corn and the Rest of the World will produce _____ liters of maple syrup.   A) 35; 32.5 B) 70; 50 C) 0; 0 D) 90; 100


Definitions:

Stackelberg Leader

A firm that has a dominant position in a market or industry, dictating terms and strategies that other firms, or followers, adapt to.

Lump Sum Tax

A tax that is a fixed amount, no matter the change in circumstance of the taxed entity, not affected by the taxpayer's income or activity level.

Outputs

Refers to the goods or services produced by a company or economy, indicative of productivity or production levels.

Discount Sources

Various origins from which price reductions can be obtained, such as coupons, sales promotions, or bulk buying.

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