Question

Normal No Spacing Heading 1 Heading 2 Title Jack's production possibilities Jills production possibilities Production food Clothing Production Food Clothing point pounds) pounds! point (pounds) pounds) 24 and 45 and 16 and 30 and and 15 and and his opportunity cost 7) in the table above, Jack's opportunity cost for 1 pound of food is for 1 pound of dothing is A) 1 pound of clothing: 4 pounds of food B) 1/2 of a pound of clothing: 2 pounds of food 1/3 of a pound of clothing: 3 pounds of food 2 pounds of clothing: 2 pounds of food 1 pound of food. 1 pound of clothing D) E) and her opportunity cost for 8) In the table above, il's opportunity cost for 1 pound of food is 1 pound of clothing is A 1 pound of clothing: 4 pounds of food B) 1/2 of a pound of clothing: 2 pounds of food 1/3 of a pound of clothing 3 pounds of food pounds of doing 2 pounds of food 1 pound of food; 1 pound of clothing 0 2 9) in the table above c's comparative advantage advantage is producing A clothing food r ing and food, nothing nothing clothing and food B D Focus MacBook Pro BTU 2 A EDO O

Answer 1

Answer:

7.B. 1/2 pound of cloth; 2 pounds of food. This is because jack can produce either 24 pounds of food or 12 pounds of cloth. Thus 2 pounds of food is equivalent to 1 pound of cloth and vice versa.

8. C. 1/3 pound of cloth; 3 pounds of food. This is because Jill can produce either 45 pounds of food or 15 pounds of cloth. Thus 3 pounds of food is equivalent to 1 unit of cloth.

9. A. Clothing; food. This is because Jack has greater ratio i.e.12/15=0.8 in the production of cloth as compared to lower ratio of 24/45 = 0.54 in the production of food.

Jill has greater ratio or comparative advantage i.e. 45/24 = 1.8 in the production of food as compared to lower ratio of 15/12=1.25 in the production of cloth.