For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
A) The opportunity cost of producing watches is higher in Denmark.
B) The opportunity cost of producing cheese is higher in Denmark.
C) The opportunity cost of producing cheese is identical in both countries.
D) It is impossible to compare opportunity costs because the two countries use different currencies.
E) In both countries combined, the opportunity cost of one watch is 150 pounds of cheese.
Correct Answer:
Verified
Q162: Which of the following is true?
A) Competition
Q163: During the last several decades, the size
Q164: Firms in a high-wage nation such as
Q165: A nation can gain from international trade
Q166: Which of the following is true?
A) In
Q168: In recent years, the largest trading partners
Q169: Nevada is the low opportunity cost producer
Q170: Each trading nation can gain by specializing
Q171: When Iceland can generate a product using
Q172: When foreigners export goods to the United
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents