Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese

question 134

Multiple Choice

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-5.The opportunity cost of 1 unit of cheese for Spain is

• A) 1/2 unit of bread.
• B) 2 hours of labor.
• C) 2 units of bread.
• D) 4 hours of labor.

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Definitions:

Consumer Surplus

The deviation between consumers’ anticipated payment for a product or service and the eventual price paid.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at each price level.

Consumer Surplus

The discrepancy in the total amount anticipated to be paid by consumers and the amount that is actually paid for a product or service.

Shipping Increases

A rise in the cost or amount required to transport goods from one location to another, potentially affecting trade and sales prices.