The United States produces 800 million cars and 2,000 million tons of grain. For the United States, what is the opportunity cost of producing 1 car?
The United States produces 800 million cars and 2,000 million tons of grain. For the United States, what is the opportunity cost of producing 1 car?
Related textbook solutions
Related questions
Table 1 Output per labor hour
|
Country |
Tons of Steel |
TVs |
|
United States |
15 |
45 |
|
United Kingdom |
10 |
20 |
Referring to Table 1, the United States has the absolute advantage in the production of:
A) Steel
B) TVs
C) Both steel and TVs
D) Neither steel nor TVs
11.
Referring to Table 1, the opportunity cost of one ton of steel in terms of TVs
A) is 45 TVs for the United States and 15 TVs for the United Kingdom.
B) is 15 TVs for the United States and 20TVs for the United Kingdom.
C) is 15/45 = 1/3 of a TV for the United States and 15/20 = 3/4 of a TV for the United Kingdom.
D) is 45/15 = 3 TVs for the United States and 20/10 = 2 TVs for the United Kingdom.
12.
Referring to Table 1, the opportunity cost of one TV in terms of steel
A) is 15 tons of steel for the United States and 10 tons of steel for the United Kingdom.
B) is 10 tons of steel for the United States and 20 tons of steel for the United Kingdom.
C) is 15/45 = 1/3 of a ton of steel for the United States and 10/20 = 1/2 of a ton of steel for the United Kingdom.
D) is 45/15 = 3 tons of steel for the United States and 20/15 tons of steel for the United Kingdom.
13.
Referring to Table 1, the United Kingdom has a comparative advantage in the production of:
A) Steel
B) Televisions
C) Both steel and televisions
D) Neither steel nor televisions
14.
Referring to Table 1, based on the principle of comparative advantage the United States should export
A) steel
B) TVs
C) both steel and TVs
D) neither steel nor TVs
Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below.
| United States | Mexico |
| Hamburgersâ (in tons) | Tacosâ (in tons) | Hamburgersâ (in tons) | Tacosâ (in tons) |
| 0 | 3636 | 0 | 3030 |
| 2020 | 2424 | 44 | 2020 |
| 4040 | 1212 | 88 | 1010 |
| 6060 | 0 | 1212 | 0 |
Which country has an absolute advantage in producingâ tacos?ââ
The United States
.
Which country has a comparative advantage in producingâ tacos?ââ
Mexico
.
Suppose the United States is currently producing
4040
tons of hamburgers and
1212
tons of tacos and Mexico is currently producing
88
tons of hamburgers and
1010
tons of tacos. If the United States and Mexico each specialize in producing only one goodâ (the good for which each has a comparativeâ advantage), then a total of
nothing
additionalâ ton(s) of hamburgers can be produced for the two countries combined â(enter a numeric response using anâ integer
