Question : 11) Refer to Table 2-10. What Barney’s opportunity cost of : 1244971

11) Refer to Table 2-10. What is Barney’s opportunity cost of making a pogo stick?

A) 1/2 unicycle

B) 2 unicycles

C) 1/3 unicycle

D) 1.4 pogo sticks

12) Refer to Table 2-10. What is Barney’s opportunity cost of making a unicycle?

A) 1/2 pogo stick

B) 2 pogo sticks

C) 1.75 unicycles

D) 2.8 pogo sticks

13) Refer to Table 2-10. Which of the following statements is true?

A) Fred has a comparative advantage in making both products.

B) Barney has a comparative advantage in making both products.

C) Barney has a comparative advantage in making pogo sticks and Fred in making unicycles.

D) Barney has a comparative advantage in making unicycles and Fred in making pogo sticks.

14) Comparative advantage means the ability to produce a good or service

A) at a lower selling price than any other producer.

B) at a lower opportunity cost than any other producer.

C) of a higher quality than any other producer.

D) at a higher profit level than any other producer.

15) Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except

A) engage in mutually beneficial trade with other nations.

B) increase the variety of products that it can consume with no increase in resources.

C) consume a combination of goods that lies outside its own production possibilities frontier.

D) produce a combination of goods that lies outside its own production possibilities frontier.

16) For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese. France can produce 1 bottle of wine for every 25 pounds of cheese it produces. Which of the following is true about the comparative advantage between the two countries?

A) Italy has the comparative advantage in cheese.

B) Italy has the comparative advantage in wine.

C) France has the comparative advantage in wine and cheese.

D) France has the comparative advantage in wine.

Figure 2-12

Figure 2-12 shows the production possibilities frontiers for Pakistan and Indonesia.  Each country produces two goods, cotton and cashews.

17) Refer to Figure 2-12. What is the opportunity cost of producing 1 bolt of cotton in Pakistan?

A) 3/8 of a pound of cashews

B) 5/8 of a pound of cashews

C) 1 3/5 pounds of cashews

D) 150 pounds of cashews

18) Refer to Figure 2-12. What is the opportunity cost of producing 1 bolt of cotton in Indonesia?

A) 3/8 of a pound of cashews

B) 5/8 of a pound of cashews

C) 2 2/3 pounds of cashews

D) 120 pounds of cashews

19) Refer to Figure 2-12. What is the opportunity cost of producing 1 pound of cashews in Pakistan?

A) 3/8 of a bolt of cotton

B) 5/8 of a bolt of cotton

C) 1 3/5 bolts of cotton

D) 240 bolts of cotton

20) Refer to Figure 2-12. What is the opportunity cost of producing 1 pound of cashews in Indonesia?

A) 3/8 of a bolt of cotton

B) 5/8 of a bolt of cotton

C) 2 2/3 bolts of cotton

D) 320 bolts of cotton