Table 3-31 ​

question 354

Multiple Choice

Table 3-31
​
-Refer to Table 3-31. Relative to the rancher, the farmer has

• A)a comparative advantage in the production of meat, because the farmer's opportunity cost of a pound of meat is lower than the rancher's opportunity cost of a pound of meat.
• B)a comparative advantage in the production of potatoes, because the rancher requires less time than the farmer to produce a pound of potatoes.
• C)a comparative advantage in the production of potatoes; relative to the farmer, the rancher has a comparative advantage in the production of meat.
• D)an absolute advantage in the production of both meat and potatoes.

---

Definitions:

Foreign Currency

Currency of another country, used to conduct international transactions or investments.

Forward Market

A marketplace for the exchange of financial instruments or commodities for delivery in the future at prices agreed upon today.

Spot Market

A public financial market in which financial instruments or commodities are traded for immediate delivery.

Communications Technology

The branch of technology that deals with the transmission of information through digital or analog means.