Popeye Produces 20 Cans of Spinach in 8 Hours

question 92

Multiple Choice

Popeye produces 20 cans of spinach in 8 hours.Wimpy produces 15 hamburgers in 10 hours.If each hamburger trades for 1.5 cans of spinach,then

• A)Popeye's production and productivity are greater than Wimpy's.
• B)Popeye's production is greater than Wimpy's,but his productivity is less.
• C)Wimpy's production and productivity are greater than Popeye's.
• D)Wimpy's production is greater than Popeye's,but his productivity is less.

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Definitions:

Flexible Exchange Rates

A currency system where the value of a currency in relation to others is determined by the foreign exchange market without direct government control.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Unemployment

The situation when individuals who are capable of working and willing to work cannot find employment.

Balance of Payments

A comprehensive record of all economic transactions between residents of a country and the rest of the world during a specific period.