Figure 3-11 the Graph Below Represents the Various Combinations of Ham and Ham

question 65

Multiple Choice

Figure 3-11
The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.

-Refer to Figure 3-11.The nation of Cropitia has a comparative advantage over Bonovia in producing ham if

• A) Cropitia can produce more than 400 pounds of ham per month.
• B) Cropitia can produce more than 320 pounds of cheese per month.
• C) Cropitia's opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese.
• D) Cropitia's opportunity cost of producing a pound of ham is greater than 0.8 pounds of cheese.

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Definitions:

Direct Payments

Cash payments provided by governments to farmers or businesses, often to support incomes, encourage investment, or protect against price fluctuations.

Countercyclical Payments

Payments made by the government to individuals or businesses during economic downturns to stabilize the economy by increasing purchasing power.

Agricultural Exports

Goods that are produced through farming and agriculture that are sold to other countries.

Instability

The tendency of a system or market to experience unpredictable or erratic changes, potentially leading to chaos or disorder.