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wer the question(s) below based on the information in the following table, where

ID: 1095154 • Letter: W

Question

wer the question(s) below based on the information in the following table, where the numbers re r hours it will take to produce a unit of the given good. numbers represent the number of labor hours it will take to produce a unit of the given good. 39) Refer to the table above. Spain has comparative advantage in A) textiles. B) grapes. C) both grapes and textiles. D) neither grapes nor textiles. 40) Refer to the table above. France has absolute advantage in A) textiles. B) grapes. C) both grapes and textiles. D) neither grapes nor textiles. 41) Refer to the table above. If complete specialization occurs, and France has a labor force of 30000 hours of labor, then after trade begins it will produce A) 2000 units of grapes and 6000 units of textiles. B) 6000 units of textiles. C) 2000 units of grapes. U) None of the above. 42) If a country has a straight (downward sloping) production possibilities frontier, then production is said to be subject to A) decreasing opportunity costs. B) constant opportunity costs. C) increasing opportunity costs. D) first increasing and then decreasing opportunity costs. 43) An indifference curve A) is a locus of bundles of goods such that the consumer is indifferent between each of the bundles. B) is a locus of bundles of goods such that the consumer is indifferent between each good in every bundle. C) is a locus of bundles of goods such that nub good in every bundle yields equal satisfaction. D) All of the above. Answer the question(s) below based on the following diagram.

Explanation / Answer

39) A) Grapes

Spain needs to forgo only 3 textiles to make a grape, while France needs to forgo 4.5 textiless for 1 grape

40) D) Neither grapes nor textiles

France takes more time in both than Spain

41) D

France will produce 30000/2 = 15000 units of textiles

42) B)

43) A)

All your answers are correct except 41!