England has a relatively cool and cloudy climate that is ill suited for grape growing. It can produce 200 units of wine for every 400 units of cloth. Portugal, in contrast, has a relatively warm and sunny climate that is good for growing grapes. It can produce 200 units of wine for every 100 units of cloth. Which country has the higher opportunity cost of producing cloth?

A. England: 2 units of wine for every unit of cloth
B. England: 1/2 unit of cloth for every unit of wine
C. Portugal: 2 units of wine for every unit of cloth
D. Portugal: 1/2 unit of wine for every unit of cloth


Answer: C

Economics

You might also like to view...

Investment is a smaller component of GDP than consumption, but it is a more stable component

Indicate whether the statement is true or false

Economics

Macroeconomics is a study of the economy as a whole, and microeconomics includes the study of decisions made by individuals and businesses

Indicate whether the statement is true or false

Economics

A firm never operates

A) at the minimum of its ATC curve. B) at the minimum of its AVC curve. C) on the downward-sloping portion of its ATC curve. D) on the downward-sloping portion of its AVC curve. E) on its long-run marginal cost curve.

Economics

The marginal product of labor is the:

A. change in labor necessary to produce an additional unit of output. B. cost of additional labor necessary to produce an additional unit of output. C. change in output resulting from adding an additional unit of labor. D. change in revenue resulting from adding an additional unit of labor.

Economics