Use the Following to Answer Questions

question 205

Multiple Choice

Use the following to answer questions:
Figure: Comparative Advantage
-(Figure: Comparative Advantage) The figure illustrates both the U.S. and Japanese production possibilities frontiers for TVs and wheat. Based on this information, which of the following is TRUE?

• A) The opportunity cost of producing a TV in the United States is 1/3 of a bushel of wheat.
• B) The opportunity cost of producing a TV in the United States is 900 bushels of wheat.
• C) The opportunity cost of producing a TV in Japan is 2 bushels of wheat.
• D) The opportunity cost of producing a bushel of wheat in Japan is 2 TVs.

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Definitions:

Randomized Block Design

An experimental design in which units are blocked into groups sharing similar characteristics to reduce variability, with each block then randomly assigned to treatments.

Independent Samples Design

An experimental design where separate groups are independently assigned to different treatments, with no member belonging to more than one group.

Completely Randomized Design

An experimental design where subjects are randomly assigned to treatments, ensuring that each treatment occurs with equal probability across all subjects.

Homogeneous Units

Groups or samples that are similar in characteristics or properties, ensuring that comparisons or experiments are not influenced by differing variables.