Assume that one day's labor in England can produce either 20 units of cloth or 2 units of wine, while in Portugal, one day's labor can produce either 24 units of cloth or 12 units of wine. If England transfers 2 units of labor from wine to cloth and Portugal transfers 1 unit of labor from cloth to wine, the increase in combined output by those two workers will be
a. 16 wine, 8 cloth
b. 16 wine, 16 cloth
c. 12 wine, 12 cloth
d. 8 wine, 16 cloth
d
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What are the reasons that are usually given to justify regulation?
What will be an ideal response?
The figure above shows the market for coffee. If 30 pound of coffee a month are available, the ________ price that consumers are willing to pay for the last pound is ________
A) maximum; $4.00 B) minimum; $4.00 C) maximum; $2.50 D) minimum; $2.50
Faced with increasing outflows of gold in the late 1960s and early 1970s, the United States
A. decreased the dollar price of gold. B. used contractionary fiscal policies to rid the nation of deficits. C. suspended the convertibility of dollars into gold. D. encouraged other countries to increase their domestic interest rates.
Refer to Scenario 9.8 below to answer the question(s) that follow. SCENARIO 9.8: Investors put up $1,040,000 to construct a building and purchase all equipment for a new gourmet cupcake bakery. The investors expect to earn a minimum return of 10 per cent on their investment. The bakery is open 52 weeks per year and sells 900 cupcakes per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The bakery charges $8 on average per cupcake.Refer to Scenario 9.8. The normal return to the investors on a weekly basis is
A. $600. B. $1,000. C. $2,000. D. $4,500.