Use the following to answer questions: Table: Movies and Oil $$\begin{array}{l}
\text { Hypothetical maximum production in various U.S. states }\
\begin{array} { l c c }
\hline & \text { Movies/Year } & \text { Barrels of Oil/Year (millions) } \
\hline \text { Texas } & 75 & 50 \
\text { California } & 60 & 30 \
\text { New York } & 20 & 5 \
\hline
\end{array}
\end{array}$$
-(Table: Movies and Oil) According to the table, which state has the comparative advantage in oil?
A) Texas, because it can produce more oil than anyone else
B) New York, because its opportunity cost for a barrel of oil is 4 movies per year
C) Texas, because its opportunity cost for a barrel of oil is 1.5 movies per year
D) California, because its opportunity cost for a barrel of oil is 2 movies per year

Question

Use the following to answer questions: Table: Movies and Oil $$\begin{array}{l}
\text { Hypothetical maximum production in various U.S. states }\
\begin{array} { l c c } 
\hline & \text { Movies/Year } & \text { Barrels of Oil/Year (millions) } \
\hline \text { Texas } & 75 & 50 \
\text { California } & 60 & 30 \
\text { New York } & 20 & 5 \
\hline
\end{array}
\end{array}$$
-(Table: Movies and Oil) According to the table, which state has the comparative advantage in oil?
A) Texas, because it can produce more oil than anyone else
B) New York, because its opportunity cost for a barrel of oil is 4 movies per year
C) Texas, because its opportunity cost for a barrel of oil is 1.5 movies per year
D) California, because its opportunity cost for a barrel of oil is 2 movies per year

Quizplus · Accepted Answer

Texas has the comparative advantage in oil because its opportunity cost for a barrel of oil is 1.5 movies per year, which is lower than the opportunity cost of either California or New York.

Use the Following to Answer Questions: Table: Movies and Oil