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.

---

Definitions:

Regressive Tax

A tax levied in a way where the rate of taxation diminishes as the taxable amount gets larger.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount subject to tax.

Progressive Tax

A tax system where the tax rate increases as the taxable amount or income rises, meaning higher earners pay a larger percentage of their income in taxes than lower earners.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, meaning higher income individuals pay a larger percentage of their income in taxes compared to lower-income individuals.