The Following Question Are Based on the Following Information

question 48

Multiple Choice

The following question are based on the following information. Country A can produce either 10,000 barrels of petroleum or 12,000 bushels of wheat with one unit of its resources. Country B can produce either 7,000 barrels of petroleum or 15,000 bushels of wheat with one unit of its resources.
-If each country shifts one unit of resources into the production of the good in which it is relatively more efficient,world output would rise by

• A) 10,000 bushels of wheat.
• B) 17,000 barrels of petroleum.
• C) 10,000 barrels of petroleum and 15,000 bushels of wheat.
• D) 3,000 barrels of petroleum and 3,000 bushels of wheat.
• E) 8,000 bushels of wheat and fall by 2,000 barrels of petroleum.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in the production process.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, showing assets, liabilities, and equity.

Trial Balance

An informal listing of the ledger accounts and their balances in the ledger to aid in proving the equality of debits and credits.