Use the Following to Answer Questions

question 190

Multiple Choice

Use the following to answer questions:
Scenario: Countries A and B
Two countries, A and B, produce two goods, wheat (W) and steel (S) . Each has a linear production possibility frontier in both goods. If country A spends all of its available resources to produce wheat, it can produce 500 tons of wheat and no steel. If it uses all of its resources to produce steel, it can produce 250 tons of steel and no wheat. If country B spends all of its available resources producing wheat, it can produce 400 tons of wheat, and if it spends all of its resources on the production of steel, it can produce 400 tons of steel.
-(Scenario: Countries A andB) Look at the scenario Countries A and B. If each country devotes half of its resources to the production of wheat and half to the production of steel, then their combined total production of wheat will be _____ tons and their combined total production of steel will be _____ tons.

• A) 450; 325
• B) 900; 650
• C) 500; 250
• D) 400; 400

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Definitions:

Structural Unemployment

A form of unemployment caused by fundamental changes in the economy that reduce the demand for certain skills or labor.

Petroleum Refinery

A processing plant where crude oil is transformed into various usable petroleum products such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas.

Oil to Natural Gas

The transition or conversion from using oil as a primary energy source to using natural gas, often due to environmental, economic, or supply considerations.

Structurally Unemployed

Individuals who are unemployed due to their skills not matching job requirements or significant shifts in the economy.