Suppose an American Worker Can Make 50 Pairs of Gloves

question 128

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day.On the other hand,a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day.The opportunity cost of one pair of gloves is:

• A) 6 radishes for the United States and 2 radishes for Bangladesh.
• B) 60 radishes for the United States and 20 radishes for Bangladesh.
• C) 1/6 radishes for the United States and ½ radishes for Bangladesh.
• D) 6,000 radishes for the United States and 2,000 radishes for Bangladesh.

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Definitions:

Economic Recession

A temporary downturn in economic activity, characterized by decreased trade and industrial output, usually marked by a decrease in the Gross Domestic Product (GDP) for two consecutive quarters.

Automobile Production

The process of manufacturing cars, involving assembly of various components such as engine, chassis, bodywork, and electronics.

Life Expectancy

The average number of years a person is expected to live based on statistical averages, which can vary significantly across different geographical regions and demographics.

U.S. Business

Commercial, industrial, or professional activity conducted within the United States, contributing to its economy.