The table given below shows the units of land and labor required to produce a unit of bread and cheese respectively in country X. Identify the correct statement. $$\begin{array} { | c | c | c | }
\hline & \text { 1 urit of Bread } & \text { 1 unit of Cheese } \
\hline \text { Labor Input } & 5 \text { units } & 20 \text { units } \
\hline \text { Land Input } & 4 \text { units } & 10 \text { units } \
\hline
\end{array}$$
A)Production of bread is relatively labor-intensive in the country.
B)Production of bread is relatively land-intensive in the country.
C)The opportunity cost of producing an extra unit of bread is 2 units of cheese.
D)The domestic price ratio in the country is 2 units of bread per unit of cheese.

Question

The table given below shows the units of land and labor required to produce a unit of bread and cheese respectively in country X. Identify the correct statement. $$\begin{array} { | c | c | c | } 
\hline & \text { 1 urit of Bread } & \text { 1 unit of Cheese } \
\hline \text { Labor Input } & 5 \text { units } & 20 \text { units } \
\hline \text { Land Input } & 4 \text { units } & 10 \text { units } \
\hline
\end{array}$$
A)Production of bread is relatively labor-intensive in the country.
B)Production of bread is relatively land-intensive in the country.
C)The opportunity cost of producing an extra unit of bread is 2 units of cheese.
D)The domestic price ratio in the country is 2 units of bread per unit of cheese.

Quizplus · Accepted Answer

To determine whether the production of bread or cheese is more labor or land-intensive, we compare the ratios of labor to land required for each. For bread, it requires 5 units of labor for 4 units of land, and for cheese, it requires 20 units of labor for 10 units of land. This means cheese production is more labor-intensive relative to its land use compared to bread, making bread production relatively more land-intensive.

The Table Given Below Shows the Units of Land and Labor