Use the Following to Answer Questions: Table: Movies and Oil

question 68

Multiple Choice

Use the following to answer questions: Table: Movies and Oil $$\begin{array}{l}\text { Hypothetical maximum production in various U.S. states }\\\begin{array} { l c c } \hline & \text { Movies/Year } & \text { Barrels of Oil/Year (millions) } \\\hline \text { Texas } & 75 & 50 \\\text { California } & 60 & 30 \\\text { New York } & 20 & 5 \\\hline\end{array}\end{array}$$
-(Table: Movies and Oil) According to the table, which state has the comparative advantage in oil?

• A) Texas, because it can produce more oil than anyone else
• B) New York, because its opportunity cost for a barrel of oil is 4 movies per year
• C) Texas, because its opportunity cost for a barrel of oil is 1.5 movies per year
• D) California, because its opportunity cost for a barrel of oil is 2 movies per year