Ross and Rachel produce clay pots and garden gnomes. The first table shows Ross's production possibilities and the second table shows Rachel's production possibilities. Each week, Ross produces 4 clay pots and 32 garden gnomes and Rachel produces 8 clay pots and 4 garden gnomes.Ross's Production Possibilities Clay Pots (per week) Garden Gnomes (per week) 20 0 16 8 12 16 8 24 4 32 0 40

Rachel's Production Possibilities Clay Pots (per week) Garden Gnomes (per week) 16 0 8 4 0 8

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6.Using FACT #1, what is Ross's opportunity cost of producing 1 clay pot? What is Ross's opportunity cost of producing 1 garden gnome?

A) 8 garden gnomes;

1 8 clay pots.

B)

1 8 garden gnomes; 8 clay pots. C) 2 garden gnomes; 1 2 clay pots. D) 1 2 garden gnomes; 2 clay pots.

7.Using FACT #1, what is Rachel's opportunity cost of producing 1 clay pot? What is Rachel's opportunity cost of producing 1 garden gnome?

A) 8 garden gnomes;

1 8 clay pots.

B)

1 8 garden gnomes; 8 clay pots. C) 2 garden gnomes; 1 2 clay pots. D) 1 2 garden gnomes; 2 clay pots.

8. Using FACT #1, who has the comparative advantage in producing garden gnomes? Who has the comparative advantage in producing clay pots?

A) Ross; Rachel. B) Ross; Ross. C) Rachel; Ross. D) Rachel; Rachel.

9.Using FACT #1, what are the overall net gains from specialization and trade?

A) 16 clay pots and 40 garden gnomes. B) 4 clay pots and 4 garden gnomes. C) 8 clay pots and 4 garden gnomes. D) 8 clay pots and 20 garden gnomes.