Author Question: On a typical acre of land, Iowa can produce either 300 pounds of beef or 100 pounds of soybeans in a ... (Read 107 times)

Brittanyd9008 · **on:** Jun 29, 2018

On a typical acre of land, Iowa can produce either 300 pounds of beef or 100 pounds of soybeans in a year. On a typical acre of land, Nebraska can produce 150 pounds of beef or 200 pounds of soybeans. Which of the following is correct?

A) Nebraska should produce soybeans because its opportunity cost of soybeans is lower.
B) Iowa should produce soybeans because its opportunity cost of soybeans is higher.
C) Iowa should produce soybeans because its opportunity cost of soybeans is lower.
D) Nebraska and Iowa should divide each acre evenly between soybean and beef production.
E) Nebraska should produce soybeans because its opportunity cost of soybeans is higher.

Question 2

Which of the following are typically financed in a bond market?

i. a mortgage for a house
ii. state government borrowing for a new road project
iii. your purchase of 4000 shares of stock in Google
A) ii and iii B) ii only C) i only D) i and iii E) i and ii