Refer to Figure 2-8. The linear production possibilities frontier ...

[Jipu 123]

Refer to Figure 2-8. The linear production possibilities frontier in the figure indicates that
 
  A) Vidalia has a comparative disadvantage in the production of roses.
  B) it is progressively more expensive to produce orchids.
  C) Vidalia has a comparative advantage in the production of orchids.
  D) the tradeoff between roses and orchids is constant.

Question 2

Refer to Figure 5-3. The size of marginal external benefits can be determined by
 
  A) D2 + D1 at each output level B) the demand curve D2.
  C) D2 - D1 at each output level. D) the demand curve D1.

[b614102004]

Answer to Question 1

D

Answer to Question 2

C

[Jipu 123]

Correct answers!

[b614102004]

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