Figure 3-23 the Graph Below Represents the Various Combinations of Ham and Ham

question 127

Multiple Choice

Figure 3-23
The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.
-Refer to Figure 3-23.In the nation of Cropitia,the opportunity cost of a pound of cheese is 1.5 pounds of ham.Bonovia and Cropitia both can gain from trading with one another if one pound of cheese trades for

• A)1.0 pound of ham.
• B)1.4 pounds of ham.
• C)2.1 pounds of ham.
• D)All of the above are correct.

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Definitions:

International Competitiveness

The ability of a country to produce goods and services at a lower price and higher quality than its international competitors.

Economic Fluctuations

Variations in the growth rate of an economy over a period of time, characterized by cycles of expansion and contraction.

Regressive Income Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.

Unemployment Insurance

A government-provided financial assistance program for individuals who have lost their job, offering temporary financial support.