France and England Both Produce Wine and Cloth with Constant

question 106

Multiple Choice

France and England both produce wine and cloth with constant opportunity costs.France can produce 150 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine.England can produce 50 barrels of wine if it produces no cloth or 150 bolts of cloth if it produces no wine.When international trade takes place,each country specializes completely in the production of the good in which it has a comparative advantage: 1 barrel of wine exchanges for 1 bolt of cloth and France exports 50 units of wine.We can conclude that France produces _____ units of wine and _____ units of cloth and that France consumes _____ units of wine and _____ units of cloth.

• A)150;100;100;100
• B)150;0;100;50
• C)150;0;50;50
• D)0;100;50;50

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Definitions:

Home Football Game

A football match played at the team's own stadium or official field, often having a supportive home crowd.

Free Rider

An individual or entity that benefits from resources, goods, or services without paying for them, often leading to market failures.

Costs of Production

All expenses incurred in the process of creating and offering goods or services for sale, including raw materials, labor, and overheads.

Nonexcludable

A characteristic of a good or service that makes it impossible to prevent individuals who have not paid for it from having access to it.