Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. If they open up to trade and the citizens of the island consumed 1,200 fish per year, how many pounds of berries can they consume every year?
A. 9,200 pounds
B. 12,800 pounds
C. 8,000 pounds
D. 9,400 pounds
Answer: D
You might also like to view...
The Keynesian approach to government economic policy: a. has emphasized the role of individual self-interest as a powerful stabilizing force. b. has consistently failed to reduce fluctuations in economic activity
c. was ineffective during the 1960s. d. highlighted the role of aggregate demand. e. was rechristened supply-side economics around 1980.
For any given year, the CPI is the price of the basket of goods and services in the
a. given year divided by the price of the basket in the base year, then multiplied by 100. b. given year divided by the price of the basket in the previous year, then multiplied by 100. c. base year divided by the price of the basket in the given year, then multiplied by 100. d. previous year divided by the price of the basket in the given year, then multiplied by 100.
The federal government increases spending by $50 billion, and the main effect is an increase in the price level. It must be true that the economy is operating on the
A. horizontal portion of the aggregate demand curve. B. horizontal portion of the aggregate supply curve. C. vertical portion of the aggregate supply curve. D. vertical portion of the aggregate demand curve.
Papayas and grapefruit are substitute goods. A drought in California destroyed a good portion of the grapefruit crop. Ceteris paribus,
A. the price of both papayas and grapefruit will fall. B. the price of both papayas and grapefruit will increase. C. the price of grapefruit will increase, and the price of papayas will fall. D. the price of grapefruit will fall, and the price of papayas will increase.