For Each Watch Denmark Produces, It Gives Up the Opportunity

question 140

Multiple Choice

For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?

• A) The opportunity cost of producing watches is higher in Denmark.
• B) The opportunity cost of producing cheese is higher in Denmark.
• C) The opportunity cost of producing cheese is identical in both countries.
• D) It is impossible to compare opportunity costs because the two countries use different currencies.
• E) In both countries combined, the opportunity cost of one watch is 150 pounds of cheese.

---

Definitions:

Syntax

Pertains to the rules that govern the structure of sentences in language, including the order of words and phrases to convey clear semantic meaning.

Morphemes

The smallest meaningful units in a language, such as roots, prefixes, and suffixes.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a language, especially regarding word order and punctuation.

Psycholinguists

Researchers who study the psychological and neurobiological factors that enable humans to acquire, use, comprehend, and produce language.