Table 3-4 Assume That the Farmer and the Rancher Can Switch Between

question 380

Multiple Choice

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

-Refer to Table 3-4.Assume that the farmer and the rancher each has 24 labor hours available.If each person spends all his time producing the good in which he has a comparative advantage,then total production is

• A) 3 pounds of meat and 4 pounds of potatoes.
• B) 8 pounds of meat and 12 pounds of potatoes.
• C) 11 pounds of meat and 16 pounds of potatoes.
• D) 15 pounds of meat and 12 pounds of potatoes.

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Definitions:

Technological Advance

The process of providing society with new and improved products and services through improved technology.

Random External Force

An unpredictable event or factor outside the control of a firm or economy that can affect its performance or the market.

Military-Related Research

Research and development activities focused on creating or improving military technology, strategies, and operations.

Capitalism

An economic system where private individuals own and control means of production and operate for profit, with minimal government interference.