Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. Hours Needed to Make 1 Car Airplane Japan 30 150 Korea 50 150 Quantity Produced in 2400 Hours Cars 80 48 Airplanes 16 16 4. Refer to Table 3-26. Suppose Korea decides to increase its production of cars by 18. What is the opportunity cost of this decision? a. 3 airplanes b. 6 airplanes c. 16 airplanes d. 150 airplanes
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. Hours Needed to Make 1 Car Airplane Japan 30 150 Korea 50 150 Quantity Produced in 2400 Hours Cars 80 48 Airplanes 16 16 4. Refer to Table 3-26. Suppose Korea decides to increase its production of cars by 18. What is the opportunity cost of this decision? a. 3 airplanes b. 6 airplanes c. 16 airplanes d. 150 airplanes
Brief Principles of Macroeconomics (MindTap Course List)
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Chapter3: Interdependence And The Gains Rrom Trade
Section: Chapter Questions
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![Assume that Japan and Korea can switch between producing cars and producing airplanes at
a constant rate.
Table 3-26
Hours Needed to Make 1
Car
Airplane
Japan
30
150
Korea 50
150
Farmer
Rancher
Quantity Produced in 2400 Hours
Cars
80
48
4. Refer to Table 3-26. Suppose Korea decides to increase its production of cars by 18. What is
the opportunity cost of this decision?
a. 3 airplanes
b. 6 airplanes
c. 16 airplanes
d. 150 airplanes
8 hours/pound
4 hours/pound
Airplanes
16
16
Table 3-15
Labor Hours Needed to Make 1 Pound of Amount Produced in 40 Hours
Meat
Potatoes
5 hours/pound
10 hours/pound
Meat
5 pounds
10 pounds
Potatoes
8 pounds
4 pounds
5. Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours
available. If each person divides his time equally between the production of meat and potatoes,
then total production is
a. 5 pounds of meat and 4 pounds of potatoes.
b. 6 pounds of meat and 7.5 pounds of potatoes.
c. 7.5 pounds of meat and 6 pounds of potatoes.
d. 10 pounds of meat and 8 pounds of potatoes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d8618e4-e230-4c20-b760-ebcb33f527d3%2Fd0f61722-e057-4685-b213-b8c1f1d18feb%2Fpah4xkk_processed.png&w=3840&q=75)
Transcribed Image Text:Assume that Japan and Korea can switch between producing cars and producing airplanes at
a constant rate.
Table 3-26
Hours Needed to Make 1
Car
Airplane
Japan
30
150
Korea 50
150
Farmer
Rancher
Quantity Produced in 2400 Hours
Cars
80
48
4. Refer to Table 3-26. Suppose Korea decides to increase its production of cars by 18. What is
the opportunity cost of this decision?
a. 3 airplanes
b. 6 airplanes
c. 16 airplanes
d. 150 airplanes
8 hours/pound
4 hours/pound
Airplanes
16
16
Table 3-15
Labor Hours Needed to Make 1 Pound of Amount Produced in 40 Hours
Meat
Potatoes
5 hours/pound
10 hours/pound
Meat
5 pounds
10 pounds
Potatoes
8 pounds
4 pounds
5. Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours
available. If each person divides his time equally between the production of meat and potatoes,
then total production is
a. 5 pounds of meat and 4 pounds of potatoes.
b. 6 pounds of meat and 7.5 pounds of potatoes.
c. 7.5 pounds of meat and 6 pounds of potatoes.
d. 10 pounds of meat and 8 pounds of potatoes.
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