7. The following production possibilities schedule shows the quantities of soybeans and oil that can be produced in Canada and Mexico with one unit of equivalent resources.

Canada:

Soybeans (bushels) : 51

Oil (Barrels): 12

Mexico:

Soybeans (bushels): 25

Oil (Barrels): 7

Mexico would not gain by producing and exporting oil and importing soybeans unless it received

A) more than3.57 bushels of soybeans per barrel of oil

B) 1.71 bushels of soybeans per barrel of oil

C) more than 12 barrels of oil

D) more than 4.25 bushels of soybeans per barrel of oils

8.If Germany has a comparative advantage over France in the production of beer, the implies that (foe a similar quantity of beer) the

A) opportunity cost of production is less in France

B) absolute cost of production is less in Germany

C) absolute cost of production is less in France

D) opportunity cost of production is less in Germany

9.Janelle is an investor looking at the bond market for an investment opportunity. If Janelle knows that 1-year interest rates for the new fours years are expected to be 4,2,7, and 3 percent, and the 4-year term premium is 1 percent, then the 4-year bond rate will be ______

A) 3%

B) 2%

C) 5%

D) 4%