Question : 231.RefertoFigure3-23.WheneverBonoviaincreasesitsproductionofhamby1poundpermonth,thenitmustdecreaseitsproductionofcheeseby a.0.75pound. b.0.80pound. c.1.00pounds. : 1262271

 

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.