Arabia and the United States face the production possibilities for oil and cars shown in the following table.

Arabia United States

(Oil millions of barrels) (Cars Millions) (Oil millions of barrels) (Cars Millions)

0 4 0 12

250 3 150 9

500 2 300 6

750 1 450 3

1000 0 600 0

Question 5: In autarky, if the United States decides to produce 7 million cars, the maximum number barrels of oil it can produce is _______.

A. 200 million

B. 225 million

C. 250 million

D. 275 million

Question 6: In autarky, if Arabia decides to

produce 400 million barrels of oil and the united states 250 million barrels,

the combined output oil and cars for the two countries is _______ million

barrels of oil and _______million cars

A. 625 9.8

B. 625 9.4

C. 650 9.8

D. 650 9.4

Question 7: Suppose each country specializes in

the good in which it has the comparative advantage.The maximum quantity

of oil produced is ________million barrels, and the maximum quantity of cars

produced is ________ million.

A. 1000 12

B. 1000 10

C. 900 12

D. 900 10

Question 8: With specialization and trade,

Arabia consumes 450 million barrels of oil and the United States consumes 8

million cars.Then the quantity of oil exported from Arabia to the United

States is ________ barrels, and the quantity of cars exported from the United

States to Arabia is _______.

A. 650 5

B. 600 4.5

C. 550 4

D. 500 3.5

Question 9: A barrel of oil costs $90 on the

world market.How much, then, does a car cost on the world market?

A. $13,875

B. $12,375

C. $11,875

D. $11,375