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Use the following to answer questions 11-12: Table: The Production Possibilities for Tractors and Crude Oil Crude oil Country Tractors (thousands of barrels) United States
Use the following to answer questions 11-12: Table: The Production Possibilities for Tractors and Crude Oil Crude oil Country Tractors (thousands of barrels) United States 80 40 Mexico 60 180 11. (Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. Which of the following is TRUE? A) The opportunity cost of crude oil is lower in the United States than in Mexico. B) The opportunity cost of crude oil is higher in the United States than in Mexico. C) Crude oil costs are the same in the United States and in Mexico. D) Tractor costs are the same in the United States and in Mexico. 12. (Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. The United States has a comparative advantage in and Mexico has a comparative advantage in A) both goods; neither good B) neither good; both goods C) tractors; crude oil D) crude oil; tractors
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