Use this table
US | France
Pairs of jeans 8 | 12
Bottles of wine 16 | 8
A. jeans only
B. both jeans and wine
C. wine only
D. neither jeans nor wine
Answer: A. jeans only
A. jeans only
B. both jeans and wine
C. wine only
D. neither jeans nor wine
Answer: C. wine only
A. 2/3 pair of jeans
B. 1 pair of jeans
C. 1.5 pairs of jeans
D. 8 pairs of jeans
E. 12 pairs of jeans
Answer: C. 1.5 pairs of jeans
A. 1/2 bottle of wine
B. 2 bottles of wine
C. 6 bottles of wine
D. 8 bottles of wine
E. 12 bottles of wine
Answer: B. 2 bottles of wine
US | France
Pairs of jeans 8 | 12
Bottles of wine 16 | 8
France has a comparative advantage in the production of:
A. jeans only
B. both jeans and wine
C. wine only
D. neither jeans nor wine
Answer: A. jeans only
The US has a comparative advantage in the production of:
A. jeans only
B. both jeans and wine
C. wine only
D. neither jeans nor wine
Answer: C. wine only
What is the opportunity cost of France producing 1 bottle of wine is _____.
A. 2/3 pair of jeans
B. 1 pair of jeans
C. 1.5 pairs of jeans
D. 8 pairs of jeans
E. 12 pairs of jeans
Answer: C. 1.5 pairs of jeans
The opportunity cost of the US producing 1 pair of jeans is ____.
A. 1/2 bottle of wine
B. 2 bottles of wine
C. 6 bottles of wine
D. 8 bottles of wine
E. 12 bottles of wine
Answer: B. 2 bottles of wine