Refer to the Information Provided in Table 18

question 37

Multiple Choice

Refer to the information provided in Table 18.1 below to answer the questions that follow.
Table 18.1
-Refer to Table 18.1. Before specialization, Mexico produces 160 bushels of oranges and 40 bushels of bananas, and Guatemala produces 30 bushels of oranges and 40 bushels of bananas. After specialization, the increase in banana production is

• A) 10 bushels of bananas.
• B) 15 bushels of bananas.
• C) 20 bushels of bananas.
• D) 40 bushels of bananas.

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Definitions:

Natural Rate

Refers often to the natural rate of unemployment where the economy is in equilibrium, or the natural rate of interest that corresponds to the equilibrium in the loanable funds market.

Structural Unemployment

Unemployment that stems from changes in industrial structures, primarily driven by technological progress, rather than by shifts in supply or demand levels.

Frictional Unemployment

Frictional unemployment is a form of temporary unemployment that occurs when workers are transitioning between jobs, often due to personal choices or changing economic conditions.

Unemployment Insurance

Financial support provided by the state to those who are out of work not because of their own doing.