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:

Price Level

An indicator that measures the average of current prices across the entire spectrum of goods and services produced in the economy.

Unit Prices

The cost per unit of a product, which allows consumers to compare costs of products irrespective of their package quantities.

Inventories

Quantities of goods that are held by a company in anticipation of being sold or used in production processes.

Manufacturers

Entities or individuals that use raw materials, parts, and components to produce finished goods through various processes, machinery, and operations.