The Following Data Outline Production Choices (A or B) in Two

question 59

Multiple Choice

The following data outline production choices (A or B) in two nations, Landia and Scandia. Landia has a workforce of 12 and Scandia has a workforce of 10.

$$\begin{array} { | l | c | c | c | c | c | c | } \hline { \text { Output per worker in Landia } } & & && { \text { Output per worker in Scandia } } \\\hline & \mathrm { A } & \mathrm { B } & & & \mathrm { A } & \mathrm { B } \\\hline \text { Fish } & 8 & 0 & & \text { Fish } & 16 & 0 \\\hline \text { Chips } & 0 & 40 & & \text { Chips } & 0 & 48 \\\hline\end{array}$$

-If Landia and Scandia fully specialize in accordance with comparative advantage,their total output will be:

• A)80 fish and 576 chips
• B)160 fish and 480 chips
• C)96 fish and 400 chips
• D)96 fish and 480 chips
• E)160 fish and 576 chips

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Definitions:

Coupon Rate

The interest rate stated on a bond or other fixed-income security, expressed as a percentage of the principal amount.

Yield Curve

A graph showing the relationship between interest rates and the maturity length of debt securities, indicating the term structure of interest rates.

Economic Indicators

Statistics and data metrics that provide insights into the economic performance of a country, leading to an understanding of its economic health and future direction.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, as an indicator of inflation.