Question 1 of 6 20 Points The following graph shows the production possibility frontier of country A. Please calculate country A's opportunity cost of producing automobiles. number of rice by tons 1500 900 500 Probability frontier number of automobile 0 1000 1800 2000 A. 0.5 C. -2 E. 400 B. -0.5 D. 2 F. 800 Answer: Rationale:Question 2 of 6 20 Points Suppose France and Argentina each has 20,000 hours/month labor supply, and labor is the only input for production. In France, it takes 3 hours to produce one kilogram of cheese and 6 hours to produce 1 bottle of wine, whereas in Argentina, it takes 2 hour and 3 hours to produce each kind of commodity. Which country has the absolute advantage in producing cheese? A. Argentina B. France Answer: Question 3 of 6 20 Points The settings are the same as those in question 2. Which country has the comparative advantage in producing wine? A. France B. Argentina Answer: Rationale: Question 4 of 6 20 Points Let's consider a 2 country2 goods HeckscherOhlin model. For good X, the labor input coefficient and capital input coefficient are 2 and 3 units respectively, whereas the labor input coefficient and capital input coefficient for good Y are 4 and 2 units respectively. New Germany has 600 units of labor supply and 500 units of capital supply, whereas Japan has 600 units of labor supply and 800 units of capital supply. Which kind of good is labor intensive? A. Y B. X Answer: Rationale: Question 5 of 6 20 Points The settings are the same as those in question 4. Which country is capitalrich country? A. Japan B. Germany Answer: Question 6 of 6 20 Points The settings are the same as those in question 4. Suppose all the capital and labor supplies are used for production. Please calculate the produced quantity of Y in Japan. A. 50 B. 25 C. 100 D. 250 E. 1000 F. None of the above Answer: Rationale