If the Opportunity Cost of Producing Cheese Is Higher in Greece

question 91

Multiple Choice

If the opportunity cost of producing cheese is higher in Greece than it is in Italy, then:

• A) Greece should specialize in producing cheese.
• B) Italy should specialize in producing cheese.
• C) both Greece and Italy should produce cheese.
• D) Greece gives up fewer goods to produce cheese than Italy does.
• E) Italy has a better economy than Greece.

---

Definitions:

Bank Account

A financial account maintained by a banking institution where a customer can deposit and withdraw money.

Deposit

Money placed into a financial institution or account for safekeeping or to earn interest.

Compounded Quarterly

A method of calculating interest where the interest earned is added to the principal at the end of every three-month period, subsequently increasing the amount on which future interest is computed.

Future Value

The projected value of an investment at a specified future date, taking into account factors like interest rates and time.