The following production possibilities schedule shows the quantities of wheat and rice that can be produced in Canada and India with one unit of equivalent resources. $$\begin{array}{l}
\begin{array} { | l | l | l | }
\hline & \begin{array} { l }
\text { Wheat } \
\text { (bushels) }
\end{array} & \begin{array} { l }
\text { Rice } \
\text { (bushels) }
\end{array} \
\hline \text { Canada } & 13 & 5 \
\hline \text { India } & 6 & 13 \
\hline
\end{array}\
\text { TABLE 33- } 2
\end{array}$$
-Refer to Table 33- 2. If Canada were to transfer one unit of resources from rice to wheat production and if one unit of Indian resources were switched from wheat to rice production,

Question

The following production possibilities schedule shows the quantities of wheat and rice that can be produced in Canada and India with one unit of equivalent resources. $$\begin{array}{l}
\begin{array} { | l | l | l | } 
\hline & \begin{array} { l } 
\text { Wheat } \
\text { (bushels) }
\end{array} & \begin{array} { l } 
\text { Rice } \
\text { (bushels) }
\end{array} \
\hline \text { Canada } & 13 & 5 \
\hline \text { India } & 6 & 13 \
\hline
\end{array}\
\text { TABLE 33- } 2
\end{array}$$
-Refer to Table 33- 2. If Canada were to transfer one unit of resources from rice to wheat production and if one unit of Indian resources were switched from wheat to rice production,

Quizplus · Accepted Answer

If Canada transfers one unit of resources from rice to wheat production, wheat production will increase by 13 bushels (from 13 to 26 bushels), and rice production will decrease by 5 bushels (from 5 to 0 bushels). If India switches one unit of resources from wheat to rice production, wheat production will decrease by 6 bushels (from 6 to 0 bushels), and rice production will increase by 13 bushels (from 13 to 26 bushels). Therefore, the net effect of these two resource transfers is an increase in wheat production by 7 bushels (from 19 to 26 bushels) and an increase in rice production by 8 bushels (from 18 to 26 bushels).

The Following Production Possibilities Schedule Shows the Quantities of Wheat