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.

---

Definitions:

Sectional Rivalry

Competition and conflict between different regions or sections of a country, particularly evident in the United States pre-Civil War between the North and South over economic, cultural, and political differences.

Presidential Candidate

An individual who runs for the office of President in a country, participating in electoral campaigns to gain support from the electorate.

Popular Votes

The total number of votes cast by citizens in an election, as opposed to votes cast by electoral colleges or legislative bodies.

Lost Election

The outcome for a candidate or party that does not receive a majority of votes or sufficient votes to win a political election.