e) Is indeterminate; increases Use the information below to answer the next three questions. Table 2 and Ben’s Rhonda’s Individual Production Capability (numbers are in pounds) Ben Rhonda Cherries Grapes Cherries Grapes 0 80 0 50 40 0 75 0 13. opportunity cost for producing one cherry is _______ grapes, and Ben’s Rhonda’s opportunity cost for producing one cherry is _____ grapes, so ____________ has a comparative advantage in producing cherries. a) 2/3, 2, Ben b) 2, 2/3, Rhonda c) 2, 2/3 Ben d) 2/3, 2, Rhonda e) 2, 1.5 Ben Use this figure and the above information to answer the next question. 14. In the above figure the path AZE is the joint production possibility frontier for Ben and Rhonda. What are the numerical coordinates for the three points, A, Z, and E, respectively, where the coordinates are (GRAPES, CHERRIES). Multiple Choice Coordinates for Coordinates for Coordinates for Answer Point A Point Z Point E a) (0, 115) (80, 75) (130, 0) b) (0, 40) (80, 75) (50, 0) c) (80, 0) (50, 80) (50, 0) d) (80, 0) (80, 75) (50, 0) e) (120, 0) (120, 125) (0, 125) 15. Given the above information, if Ben and Rhonda each specialized in their comparative advantage, then the trading range for the price for a pound of grapes would be ____ , and the trading range for the price of a pound of cherries would be ________.
e) Is indeterminate; increases Use the information below to answer the next three questions. Table 2 Ben’s and Rhonda’s Individual Production Capability (numbers are in pounds) Ben Rhonda Cherries Grapes Cherries Grapes 0 80 0 50 40 0 75 0 13. Ben’s opportunity cost for producing one cherry is _______ grapes, and Rhonda’s opportunity cost for producing one cherry is _____ grapes, so ____________ has a comparative advantage in producing cherries. a) 2/3, 2, Ben b) 2, 2/3, Rhonda c) 2, 2/3 Ben d) 2/3, 2, Rhonda e) 2, 1.5 Ben Use this figure and the above information to answer the next question. 14. In the above figure the path AZE is the joint production possibility frontier for Ben and Rhonda. What are the numerical coordinates for the three points, A, Z, and E, respectively, where the coordinates are (GRAPES, CHERRIES). Multiple Choice Answer Coordinates for Point A Coordinates for Point Z Coordinates for Point E a) (0, 115) (80, 75) (130, 0) b) (0, 40) (80, 75) (50, 0) c) (80, 0) (50, 80) (50, 0) d) (80, 0) (80, 75) (50, 0) e) (120, 0) (120, 125) (0, 125) 15. Given the above information, if Ben and Rhonda each specialized in their comparative advantage, then the trading range for the price for a pound of grapes would be ____ , and the trading range for the price of a pound of cherries would be ________.
firstmidtermwithanswerssummer2014.docx