-(Exhibit: Production Possibilities for Machinery and Petroleum) Assuming Constant Costs

question 9

Multiple Choice

-(Exhibit: Production Possibilities for Machinery and Petroleum) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of machinery each country would have to forgo in order to produce the additional petroleum indicated. Based on the information in the exhibit, it is true that:

• A) The opportunity cost of petroleum is less in the United States than in Mexico.
• B) The opportunity cost of petroleum is more in the United States than in Mexico.
• C) Petroleum costs are the same in the United States and in Mexico.
• D) Machinery costs are the same in the United States and in Mexico.

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Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, involving logical reasoning and questioning.

Experience

The knowledge or skill acquired by a person through direct participation in events or activities.

Swallow Precautions

Strategies and interventions designed to prevent aspiration and choking in individuals with difficulty swallowing, known as dysphagia.

Aspiration

The inhalation of food, liquid, or other substances into the lungs, which can cause choking or serious lung complications.