Figure 3-1 -Refer to Figure 3-1. Assume That Both Paul and Cliff

question 48

Multiple Choice

Figure 3-1
-Refer to Figure 3-1. Assume that both Paul and Cliff divide their time equally between the production of corn and wheat, and they do not trade. If they were the only producers of corn and wheat, what would the total production of wheat and corn be?

• A) 8 bushels of wheat and 7 bushels of corn
• B) 7 bushels of wheat and 6 bushels of corn
• C) 6 bushels of wheat and 8 bushels of corn
• D) 7 bushels of wheat and 7 bushels of corn

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Definitions:

Merchandise Trade Balance

The difference between a country's exports and imports of physical goods, indicating a trade surplus or deficit.

Refrigerators

Appliances used for keeping food and drinks cold, employing the principles of thermodynamics to transfer heat from the inside to the outside environment.

Shipping

The process of transporting goods and merchandise by land, air, or sea.

Balance of Payments

A record of all transactions made between entities in one country and the rest of the world over a specified period of time.