Tom and Don Have Different Opportunity Costs of Producing Two

question 111

Multiple Choice

Tom and Don have different opportunity costs of producing two goods. If Tom and Don specialize in producing the goods in which each has a comparative advantage and they exchange goods, then

• A)they each lose because they are no longer able to produce and consume both goods.
• B)one of them will gain and one of them will lose.
• C)each will gain because each can consume a combination of goods that is outside his production possibility frontier.
• D)each will produce a combination of goods that is outside his production possibilities frontier.
• E)each will produce a combination of goods that is inside his production possibilities frontier.

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Definitions:

Coaxial Cable

A type of electrical cable consisting of a central conductor surrounded by an insulating layer and an outer conducting shield, used for transmitting television, telephone, and internet signals.

High Bandwidth

The ability of a communication system to transmit a large amount of data over a connection in a given amount of time, often associated with high-speed internet access.

Twisted-pair

A type of cabling that consists of two independently insulated wires twisted around each other to reduce electromagnetic interference.

Copper

A ductile, malleable metal with high thermal and electrical conductivity, widely used in electrical wiring and electronics.