HW 9 AGEC 315 All Answers Correct
assume that if france and spain devote a 40-hour work week to producing milk or olive oil, they could
produce the following amounts:
production possibilities
milk olive oil
france 150 25
spain 200 50
according to the table above ____________ has th...
assume that if france and spain devote a 40-hour work week to producing milk or olive oil, they could
produce the following amounts:
production possibilities
milk olive oil
france 150 25
spain 200 50
according to the table above ____________ has the absolute advantage in producing milk and
_________ has the absolute advantage in producing olive oil.
a. france; france
b. france; spain
c. spain; france
d. spain; spain ✅d. spain; spain
assume that if france and spain devote a 40-hour work week to producing milk or olive oil, they could
produce the following amounts:
milk olive oil
france 150 25
spain 200 50
according to the table above, france's opportunity cost of producing milk is ________ while spain's
opportunity cose of producing milk is ________.
, a. 0.167 units of olive oil; 0.25 units of olive oil
b. 25 units of olive oil; 50 units of olive oil
c. 6 units of olive oil; 4 units of olive oil
d. 625 units of olive oil; 1.25 units of olive oil ✅a. 0.167 units of olive oil; 0.25 units of olive oil
Assume that if France and Spain devote a 40-hour work week to producing milk or olive oil, they could
produce the following amounts:
Production Possibilities
Milk Olive oil
France 150 25
Spain 200 50
Which country will export milk under free trade?
a. Neither country
b. france
c. spain
d. france and spain ✅b. france
The price of wheat in Chicago is $5.10 per bushel. The economic cost of shipping wheat to Kansas City is
$0.15 per bushel. From the arbitrage condition, what do we know about the price of wheat in Kansas
City?
a. The price is less than or equal to $5.25.
b. The price is less than or equal to $4.95 or greater than or equal to $5.25.
c. The price is greater than or equal to $5.25.
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