Suppose That a Worker in Country a Can Make Either

question 147

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. What are two possible consumption bundles that Country B could produce?

• A) (7,200 bananas, 2,400 tomatoes) and (3,600 bananas, 1,200 tomatoes)
• B) (7,200 bananas, 0 tomatoes) and (4,000 bananas, 1,200 tomatoes)
• C) (3,600 bananas, 1,200 tomatoes) and (1,800 bananas, 1,600 tomatoes)
• D) (1,800 bananas, 1,800 tomatoes) and (900 bananas, 2,200 tomatoes)

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Definitions:

Debt Security

A financial instrument representing a loan made by an investor to a borrower, typically involving regular interest payments and the return of principal at maturity.

Borrower's Assurance

A guarantee provided by a borrower to a lender that the borrower will meet the obligations of the loan agreement.

Lenders

Entities or individuals that provide funds to borrowers under an agreement to repay with interest.

Loans

Sums of money borrowed that are expected to be paid back with interest.