The Production Possibilities Table Given Below Shows How Many Bushels

question 181

Multiple Choice

The production possibilities table given below shows how many bushels of either wheat or rice can be produced in India and Canada with 1 unit of input. To achieve gains from specialization:

• A) India should export rice to Canada and import Canadian wheat.
• B) India should export wheat to Canada and import Canadian rice.
• C) Canada should produce both wheat and rice and not trade with India.
• D) India should produce both wheat and rice and not trade with Canada.

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Definitions:

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to buy new shares at a discount.

Subscription Price

The fee that investors pay when subscribing to a new issue of securities.

Market Price

This refers to the current price at which an asset or service can be bought or sold in the market.

Dutch Auction

A method for pricing shares (or other assets) where the price is reduced until all offered shares are sold to bidders, effectively finding the market clearing price.