Multiple Choice
The following question are based on the following information. Country A can produce either 10,000 barrels of petroleum or 12,000 bushels of wheat with one unit of its resources. Country B can produce either 7,000 barrels of petroleum or 15,000 bushels of wheat with one unit of its resources.
-If each country shifts one unit of resources into the production of the good in which it is relatively more efficient,world output would rise by
A) 10,000 bushels of wheat.
B) 17,000 barrels of petroleum.
C) 10,000 barrels of petroleum and 15,000 bushels of wheat.
D) 3,000 barrels of petroleum and 3,000 bushels of wheat.
E) 8,000 bushels of wheat and fall by 2,000 barrels of petroleum.
Correct Answer:
Verified
Correct Answer:
Verified
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