This table shows how much cotton and cocoa can be produced in Peru and Brazil with one unit of equivalent resources.
-Refer to Table 33- 4. If one unit of resources is shifted from cotton to cocoa beans in Brazil, and one unit of resources is shifted from cocoa beans to cotton in Peru, world output would increase by
A) 1 bale of cotton and 2 bushels of cocoa beans.
B) 3 bales of cotton and 10 bushels of cocoa beans.
C) 2 bales of cotton and 1 bushel of cocoa beans.
D) 2 bales of cotton.
E) 6 bushels of cocoa beans.
Correct Answer:
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