Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina.   North Cantina Production PossibilitiesA B C D E FCapital Goods 5 4 3 2 1 0Consumer Goods 0 10 18 24 28 30   South Cantina Production PossibilitiesA B C D E FCapital Goods 5 4 3 2 1 0Consumer Goods 0 8 15 21 25 27 Refer to the tables. If North Cantina is producing at production alternative A, the opportunity cost of the first unit of consumer goods will beMultiple Choice5 units of capital goods.1/10 of a unit of capital goods.1/5 of a unit of capital goods.1 unit of capital goods.

The production possibilities curve below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy.What is the marginal opportunity cost of producing the third unit of capital goods?Multiple Choice4 units of consumer goods5 units of consumer goods6 units of consumer goods7 units of consumer goods

Consider China and US in a Ricardian world. Each country produces two goods, corn andwheat. Each country has 600 units of labour hour available. The table of unit labour costs forproduction of each good in each country is below:Corn WheatChina 6 4US 2 2a. Derive China’s production possibility frontier (PPF). (Write down an equation of China’sPPF)b. Draw China’s PPF. Have the quantity of corn on the horizontal axis.(Derive US’sproduction possibility frontier (PPF). (Write down an equation of US’s PPF)c. Draw US’s PPF.Have the quantity of corn on the horizontal axis.d. Derive US’s production possibility frontier (PPF). (Write down an equation of China’sPPF)e. What is the slope of PPF of China? Explain your answer.f. What is the slope of PPF of US? Explain your answer.g. In the absence of trade, what would be the prices of corn in terms of wheat in China?

Consider China and US in a Ricardian world. Each country produces two goods, corn andwheat. Each country has 600 units of labour hour available. The table of unit labour costs forproduction of each good in each country is below:Corn WheatChina 6 4US 2 2a. 1) What is the marginal product of labour in corn in China?2) What is the opportunity cost of producing corn in China?b. 1) What is the marginal product of labour in wheat in China?2) What is the opportunity cost of producing wheat in China?c. 1) What is the marginal product of labour in corn in US?2) What is the opportunity cost of producing corn in US?d. 1) What is the marginal product of labour in wheat in US?2) What is the opportunity cost of producing wheat in US?e. Which country has absolute advantage in corn?f. Which country has absolute advantage in wheat?g. Which country has comparative advantage in corn?h. Which country has comparative advantage in wheat?

Choice is necessitated by _____.*1 pointA. demand and supplyB. cost of productionC. production possibility curveD. scarcity of resources

Multiple Choice QuestionRent is the income received for the use of which factor of production?Multiple choice question.CapitalLabourLandEnterprise