Figure 3-20

Canada's Production Possibilities FrontierMexico's Production Possibilities Frontier

Refer to Figure 3-20.Canada's opportunity cost of one unit of Good Y is

a.1/2 unit of Good X and Mexico's opportunity cost of one unit of Good Y is 1/2 unit of Good X.

b.1/2 unit of Good X and Mexico's opportunity cost of one unit of Good Y is 2 units of Good X.

c.2 units of Good X and Mexico's opportunity cost of one unit of Good Y is 1/2 unit of Good X.

d.2 units of Good X and Mexico's opportunity cost of one unit of Good Y is 2 units of Good X.

Table 3-25

Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.

Hours Needed to Make 1

Amount Produced in 40 HoursmixertoastermixerstoastersMaya8558Miguel201024

Refer to Table 3-25. The opportunity cost of 1 mixer for Maya is

a.0.625 toasters.

b.5 hours of labor.

c.1.6 toasters.

d.20 hours of labor.

Figure 3-2

Brazil's Production Possibilities Frontier

Refer to Figure 3-2. If the production possibilities frontier shown is for two months of production, then which of the following combinations of peanuts and cashews could Brazilnotproduce in two months?

a.5 peanuts and 88 cashews

b.4 peanuts and 115 cashews

c.3 peanuts and 155 cashews

d.1 peanuts and 200 cashews