Given Freedom of Movement for Both Goods and Resources, If

question 125

Multiple Choice

Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that

• A) the opportunity cost of growing oranges is higher in Florida than in Georgia.
• B) Georgia has a comparative advantage in producing oranges.
• C) Florida has a comparative advantage in producing oranges.
• D) total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.

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Definitions:

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, or foreign bodies.

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, or to block out sound for concentration or sleep.

Utility Function

Mathematical model that quantifies satisfaction levels consumers receive from consuming various quantities of goods and services, guiding choices under constraint.