The Following Production Possibilities Schedule Shows the Quantities of Wheat

question 125

Multiple Choice

The following production possibilities schedule shows the quantities of wheat and rice that can be produced in Canada and India with one unit of equivalent resources.
TABLE 32-2
-Refer to Table 32-2.If Canada were to transfer one unit of resources from rice to wheat production and if one unit of Indian resources were switched from wheat to rice production,

• A)total wheat production would go up by 7 bushels.
• B)total rice production would increase by 18 bushels.
• C)total wheat production would be decreased by 13 bushels.
• D)total rice output would decrease by 8 bushels.
• E)both total wheat and total rice production would go up by 7 bushels.

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Definitions:

Real Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on an investment.

Inflation-adjusted

A method of measuring financial amounts after accounting for changes in price levels, preserving true purchasing power over time.

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