A. 2 Triangles B. ½ Triangle C. ¾ Triangle D. 4/3 Triangle What is the Opportuni
ID: 1130739 • Letter: A
Question
A. 2 Triangles
B. ½ Triangle
C. ¾ Triangle
D. 4/3 Triangle
What is the Opportunity cost of Triangles for Country B?
A. 2 Squares
B. ½ Square
C. ¾ Squares
D. 4/3 Squares
In order to trade, what action should Country A take?
A. Shift production away from triangles and produce more squares
B. Shift production away from squares and produce more triangles
C. Produce more of both products
D. No mutually beneficial trade exists; Country A has an absolute advantage
Consider the Following Two Countries, A and B:Country A Country B
Budget of $1000 Budget of $3000
Squares cost $1 to produce Squares cost $3 to produce
Triangles cost $2 to produce Triangles cost $4 to produce
What is the Opportunity cost of Squares for Country A?
A. 2 Triangles
B. ½ Triangle
C. ¾ Triangle
D. 4/3 Triangle
What is the Opportunity cost of Triangles for Country B?
A. 2 Squares
B. ½ Square
C. ¾ Squares
D. 4/3 Squares
In order to trade, what action should Country A take?
A. Shift production away from triangles and produce more squares
B. Shift production away from squares and produce more triangles
C. Produce more of both products
D. No mutually beneficial trade exists; Country A has an absolute advantage
Explanation / Answer
1 b is the correct answer
opportunity cost is defines as the next best alternative
o.c of square fore country A= cost of square/ cost of triangle= $1/$2= 1/2
2. D is correct answer
similarly
The opportunity cost of triangle in country B = cost of triangle/ cost of square= 4/3
3.A is correct
country. o.c of square. o.c of triangle
A. 1/2. 2
B. 3/4. 4/3
o.c of square is less for A
O.C of triangle is less for B
so A should produce square and B triangle
thanks
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