QUESTION 8 Cell Phones-daily production 10 A Production Possibility Frontier - Country Z 0.8 0 5 G B 15,7 10,6 C F 15, 4 10,4 D 18, 2 E 20,0 10 15 20 25 dvantage Clothing - Daily production The graph shows that Country Z can the opportunity cost of producing 8 cellphones is 20 clothing. If Country X wants to buy 8 cellphones and pay 30 clothing, what would Country Z do? Oa. All of the above b. Country Z will focus all production to make 8 cellphones (A) and trade them with Country X for 30 clothing, instead of producing domestically 20 clothing (E) c. Country Z and X are better off by trading with each other (e.g., Country Z is better getting 30 clothing by trade than producing 20 clothing) Od. Gains from trade allow for this voluntary exchange between Country Z and X
QUESTION 8 Cell Phones-daily production 10 A Production Possibility Frontier - Country Z 0.8 0 5 G B 15,7 10,6 C F 15, 4 10,4 D 18, 2 E 20,0 10 15 20 25 dvantage Clothing - Daily production The graph shows that Country Z can the opportunity cost of producing 8 cellphones is 20 clothing. If Country X wants to buy 8 cellphones and pay 30 clothing, what would Country Z do? Oa. All of the above b. Country Z will focus all production to make 8 cellphones (A) and trade them with Country X for 30 clothing, instead of producing domestically 20 clothing (E) c. Country Z and X are better off by trading with each other (e.g., Country Z is better getting 30 clothing by trade than producing 20 clothing) Od. Gains from trade allow for this voluntary exchange between Country Z and X
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 8
Cell Phones-daily production
10
A
Production Possibility Frontier - Country Z
0.8
0
5
G
B
15,7
10,6
C
F
15, 4
10,4
D
18, 2
E
20,0
10
15
20
25
dvantage
Clothing - Daily production
The graph shows that Country Z can the opportunity cost of producing 8 cellphones is 20 clothing. If Country X wants to
buy 8 cellphones and pay 30 clothing, what would Country Z do?
Oa. All of the above
b. Country Z will focus all production to make 8 cellphones (A) and trade them with Country X for 30 clothing,
instead of producing domestically 20 clothing (E)
c. Country Z and X are better off by trading with each other (e.g., Country Z is better getting 30 clothing by trade
than producing 20 clothing)
Od. Gains from trade allow for this voluntary exchange between Country Z and X
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