At a Given Level of Wheat Output, One More Unit

question 47

Multiple Choice

At a given level of wheat output, one more unit of labor would produce 10 extra bushels, and one more unit of seed would produce 30 extra bushels.A unit of labor costs $6, and a unit of seed costs $12.The farmer should

• A)produce less wheat.
• B)buy only seed.
• C)buy more seed and less labor.
• D)buy less seed and more labor.

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Definitions:

Economic Growth

The increase in a country's output of goods and services over time, reflecting improvements in the standard of living and the economy's health.

Deposit Insurance

A protection scheme for bank depositors that guarantees the safety of deposited funds up to a certain limit in the event of a bank failure.

Financial Risk

The possibility of losing money on an investment or business venture.

Open Market Operations

Technique in which the Fed buys or sells government bonds to affect the supply of money and credit.