Question : 31) Refer to Table 19-5. Select the statement that accurately : 1244905

31) Refer to Table 19-5. Select the statement that accurately interprets the data in the table.

A) Madison has a greater opportunity cost than Austin for making tacos.

B) Madison’s opportunity cost for making tacos is less than Austin’s.

C) Austin has a greater opportunity cost than Madison for making empanadas.

D) Austin’s opportunity cost for making tacos and making empanadas are both greater than Madison’s.

32) Refer to Table 19-5. Select the statement that accurately interprets the data in the table.

A) Madison has a comparative advantage in making empanadas.

B) Austin has a comparative advantage in making tacos.

C) Madison has a comparative advantage in making empanadas and making tacos.

D) Madison has a comparative advantage in making tacos.

33) Refer to Table 19-5. Select the statement that accurately interprets the data in the table.

A) Madison has a comparative advantage in making empanadas.

B) Austin has an absolute advantage in making tacos.

C) Austin has a comparative advantage in making empanadas.

D) Austin has a comparative advantage in making empanadas and making tacos.

Table 19-6

Saddles

Spurs (pairs)

Mateo

75

225

Celeste

100

225

Mateo and Celeste produce custom saddles and spurs. Table 19-6 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.

34) Refer to Table 19-6. Select the statement that accurately interprets the data in the table.

A) Mateo has an absolute advantage in making saddles and Celeste has an absolute advantage in making spurs.

B) Mateo has an absolute advantage in making spurs and Celeste has an absolute advantage in making saddles.

C) Mateo has an absolute advantage in making spurs.

D) Celeste has an absolute advantage in making saddles.

35) Refer to Table 19-6. Select the statement that accurately interprets the data in the table.

A) Mateo has an absolute advantage in making saddles and spurs.

B) Celeste has an absolute advantage in making saddles and spurs.

C) Neither Mateo nor Celeste has an absolute advantage in making saddles.

D) Neither Mateo nor Celeste has an absolute advantage in making spurs.

36) Refer to Table 19-6. Select the statement that accurately interprets the data in the table.

A) Mateo has a greater opportunity cost than Celeste for making saddles.

B) Mateo’s opportunity cost for making saddles is less than Celeste’s.

C) Celeste has a greater opportunity cost than Mateo for making saddles.

D) Mateo’s opportunity cost for making saddles and making spurs are both greater than Celeste’s.

37) Refer to Table 19-6. Select the statement that accurately interprets the data in the table.

A) Celeste has a comparative advantage in making spurs.

B) Mateo has a comparative advantage in making spurs.

C) Celeste has a comparative advantage in making saddles and making spurs.

D) Neither Mateo nor Celeste has a comparative advantage in making spurs.

38) Refer to Table 19-6. Select the statement that accurately interprets the data in the table.

A) Celeste has a comparative advantage in making saddles.

B) Mateo has an absolute advantage in making spurs.

C) Mateo has a comparative advantage in making saddles.

D) Mateo has a comparative advantage in making saddles and making spurs.

39) An economic principle that explains why people pursue different occupations is

A) absolute advantage.

B) international trade.

C) comparative advantage.

D) NAFTA.

40) Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil. We can conclude that

A) Honduras also has an absolute advantage in producing bananas relative to Brazil.

B) Honduras has a lower opportunity cost of producing bananas relative to Brazil.

C) Brazil has an absolute disadvantage in producing bananas relative to Honduras.

D) Labor costs are higher for banana producers in Brazil than in Honduras.