The Maximum Production Possible in Rome and in Cathay Are

question 123

Multiple Choice

The maximum production possible in Rome and in Cathay are as follows:

-If each country is self-sufficient (no trade) and each allocates one half of its resources to producing each of the two products,what will be the output in each country?

• A)40 bread and 20 figs in Rome and 20 bread and 40 figs in Cathay.
• B)40 bread and 0 figs in Rome and 20 bread and 0 figs in Cathay.
• C)0 bread and 20 figs in Rome and 0 bread and 40 figs in Cathay.
• D)20 bread and 10 figs in Rome and 10 bread and 20 figs in Cathay.

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Definitions:

Resources

Assets, materials, and inputs needed for the production of goods and services, including natural resources, human resources, and capital.

Society Wants

The collective desires and needs of a society or community.

Creative Destruction

An economic concept where innovation destroys old products, services, or processes to make way for new ones, driving economic development.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, guiding the allocation of resources through the price mechanism.