231.RefertoFigure3-23.WheneverBonoviaincreasesitsproductionofhamby1poundpermonth,thenitmustdecreaseitsproductionofcheeseby
a.0.75pound.
b.0.80pound.
c.1.00pounds.
d.1.25pounds.
232.RefertoFigure3-23.ThenationofCropitiahasacomparativeadvantageoverBonoviainproducinghamif
a.Cropitiacanproducemorethan400poundsofhampermonth.
b.Cropitiacanproducemorethan320poundsofcheesepermonth.
c.Cropitia’sopportunitycostofproducingapoundofhamislessthan0.8poundsofcheese.
d.Cropitia’sopportunitycostofproducingapoundofhamisgreaterthan0.8poundsofcheese.
233.RefertoFigure3-23.InthenationofCropitia,theopportunitycostofapoundofcheeseis1.5poundsofham.BonoviaandCropitiabothcangainfromtradingwithoneanotherifonepoundofcheesetradesfor
a.1.0poundofham.
b.1.4poundsofham.
c.2.1poundsofham.
d.Alloftheabovearecorrect.
234.RefertoFigure3-23.InthenationofCropitia,theopportunitycostofapoundofhamis0.3poundsofcheese.BonoviaandCropitiabothcangainfromtradingwithoneanotherifonepoundofhamtradesfor
a.0.40poundsofcheese.
b.0.55poundsofcheese.
c.0.75poundsofcheese.
d.Alloftheabovearecorrect.
Table3-32
USandFrenchProductionOpportunities
Wine(inmillionsofgallons)
Cheese(inmillionsoflbs.)
US
16
32
France
8
4
235.RefertoTable3-32TheUShasacomparativeadvantageintheproductionof
a.wine.
b.cheese.
c.bothwineandcheese.
d.neitherwinenorcheese.
236.RefertoTable3-32Francehasanabsoluteadvantageintheproductionof
a.wine.
b.cheese.
c.bothwineandcheese.
d.neitherwinenorcheese.
237.RefertoTable3-32TheopportunitycostsfortheUSandFranceareasfollows:
a.In the US 1 million gallons ofwine costs 1/2 million pounds ofcheese and in France 1 milliongallons of winecosts2millionpoundsofcheese.
b.In the US 1 million gallonsof wine costs 2 million pounds of cheese and in France 1 million gallons of winecosts1/2millionpoundsofcheese.
c.In the US 1 million pounds of cheesecosts 1/2 million gallons of wine andin France 1 million pounds ofcheesecosts2milliongallonsofwine.
d.In the US 1 million pounds of cheese costs 16 million gallons ofwine and in France 1 million pounds ofcheesecosts8milliongallonsofwine.
Table3-33
ChrisandTony’sProductionOpportunities
Tomatoes
PastaSauce
Chris
10lbs
300jars
Tony
14lbs
280jars
238.RefertoTable3-33ChrisandTonybothproducetomatoesandpastasauce.Thetableshowstheirpossibleproductionpermonthifbothworkthesamenumberof8hourdays.Giventhis information,Chris’sopportunity costof1lb.oftomatoesis
a.2jarsofsauceandTony’sopportunitycostof1lb.oftomatoesis3jarsofsauce.
b.3jarsofsauceandTony’sopportunitycostof1lb.oftomatoesis2jarsofsauce.
c.20jarsofsauceandTony’sopportunitycostof1lb.oftomatoesis30jarsofsauce.
d.30jarsofsauceandTony’sopportunitycostof1lb.oftomatoesis20jarsofsauce.
239.RefertoTable3-33ChrisandTonybothproducetomatoesandpastasauce.Thetableshowstheirpossibleproductionpermonthifbothworkthesamenumberof8hourdays.IfChrisandTonybothdecidetospecializeandproduceonlythegoodinwhichtheyhaveacomparativeadvantage,then
a.ChriswillproduceonlysauceandTonywillproduceonlytomatoes.
b.ChriswillproduceonlytomatoesandTonywillproduceonlysauce.
c.BothChrisandTonywillproduceonlysauce.
d.BothChrisandTonywillproduceonlytomatoes.
240.RefertoTable3-33ChrisandTonybothproducetomatoesandpastasauce.Thetableshowstheirpossibleproductionpermonthifbothworkthesamenumberof8hourdays.Whichofthefollowingstatementsiscorrect?
a.Tonyhasacomparativeadvantageintheproductionofsauce.
b.Chrishasacomparativeadvantageintheproductionoftomatoes.
c.Tonyhasanabsoluteadvantageintheproductionoftomatoes.
d.Chrishasanabsoluteadvantageintheproductionoftomatoes.
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