Question

21. (Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum. The opportunity cost of is in the United States as (than) in Mexico. Table: Production Possibilities for Machinery and Petroleum Machinery (M) Petroleum (P) Countries (units) United States 80 40 Mexico 60 180 O machinery; the same O petroleum; the same O petroleum; more O petroleum; less 22. (Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum. In th United States the opportunity cost of producing 40 units of machinery is units of petroleum. Table: Production Possibilities for Machinery and Petroleum Machinery (M) Petroleum (P) Countries (units) (units) United States 40 Mexico 180 80 60 O 40 O 80 20 O 60 23. (Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum. The opportunity cost in Mexico of producing 10 units of machinery is units of petroleum. Table: Production Possibilities for Machinery and Petroleum Machinery (M) Petroleum (P) Countries United States 80 40 Mexico 60 180 O 270 O 180 O 90 O 30 25. Saudi Arabia has a tremendous comparative advantage in petroleum. Which factor is a source of this comparative advantage? O large reserves of crude oil O no opportunity cost associated with oil production O high tariffs on oil from other nations O mild temperatures

Answer 1

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IN USA oppotunity cost of machinery 40 80 producing Lunit of 0.5 unit of 그 2 Petroleum opportunity cost of pooducing Louit petroleum - 80 2 unit of 40 machinery IN Mexico, oppurtunity cost of producing Lunit of machinery 180 13 - unit of Petroleum To opportunity cost of producing one unit O E petroleum - 160 5-10-33 180 3 ti unt of machinery CS Scanned with CamScanner

An suur=21), petooleum, more In Cheeft united States opportunity cost of petooleum 2 @ In mexico, opportunity cost of petroleum = 0.33 0-338 term 2 > 0.33 more in_almzenie UNITED STATES Answer-22) 20 opportunity cost of producing I unit of machinery 0.5 so 40 unit = 0.5(40) 20- option C Lunts of petooleum cs

3 Ansulenz23 opportunity option De Bo cost of producing ! pe toate con machinery unit of 3 so to units = 3xlo 30 option D. t unit of petroleum Answer-25 option A large reserve of Coude oil deserue Saudi arabia has large oil o crude oil at lower they can produce opportunity cost than (say mexico). CS Scanned with CamScanner