The First Two Columns Give the Maximum Daily Amounts of Beer

question 25

Multiple Choice

The first two columns give the maximum daily amounts of beer and whiskey that Southern Ireland and Northern Ireland can produce when they completely specialize in one or another product.The last two columns give each country's consumption without trade. $$\begin{array} { l c c c c c c } & \begin{array} { c } \text { Maxirnumn } \\\text { beer } \\\text { production }\end{array} & \begin{array} { c } \text { Maxirnum } \\\text { whiskey } \\\text { production }\end{array} & \begin{array} { c } \text { Beer consumption } \\\text { without trade }\end{array} & \begin{array} { c } \text { Beer consurnption } \\\text { without trade }\end{array} \\\begin{array} { l } \text { Northem } \\\text { Irelard } \\\text { Southem }\end{array} & 500 \mathrm { kegs } & 1500 \mathrm { kegs } & 300 \mathrm { kegs } & 600 \text { bottles } \\\text { Ireland } & 1200 \mathrm { kegs } & \mathbf { 8 0 0 } \mathrm { kegs } & 600 \mathrm { kegs } & 400 \text { bottles }\end{array}$$ Suppose that trade occurs.Each country completely specializes and 500 kegs of beer are traded for 500 bottles of whiskey.What is the international price of beer?

• A)1 bottle of whiskey = 1 keg of beer
• B)3 bottles of whiskey = 1 keg of beer
• C)2/3 bottle of whiskey = 1 keg of beer
• D)1 bottle of whiskey = 3 kegs of beer

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Definitions:

Supply Chain Management

The administration of the movement of products and services encompassing every process that turns raw materials into finished goods.

Purchasing

The process of obtaining goods or services, typically for business purposes, by paying a price or agreeing to a contract.

Transportation

The action of moving people or goods from one location to another using various modes such as by road, rail, air, or sea.

Support Activities

Functions or tasks in an organization that, while not directly involved in the primary process of products or services creation, provide essential support to enhance efficiency and effectiveness.