Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or one computer in an hour. If Germany produces one less computer and switches resources to cameras, and the United States produces one more computer and takes resources out of cameras, then the net change in camera production in both countries taken together is
A) 0.
B) minus 10 cameras.
C) plus 10 cameras.
D) plus 20 cameras.

Question

Quizplus · Accepted Answer

Germany switching from producing 1 computer to cameras means it will produce 20 cameras instead (since 1 computer = 20 cameras for Germany). The United States producing one more computer means it will produce 10 fewer cameras (since 1 computer = 10 cameras for the US). The net change is 20 (from Germany) - 10 (from the US) = +10 cameras.

Suppose That a Typical German Factory Can Produce 20 Cameras