Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-5.Assume that England and Spain each has 40 labor hours available.If each country divides its time equally between the production of cheese and bread,then total production is
A) 20 units of cheese and 5 units of bread.
B) 25 units of cheese and 7.5 units of bread.
C) 40 units of cheese and 10 units of bread.
D) 50 units of cheese and 15 units of bread.

Question

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
 
-Refer to Table 3-5.Assume that England and Spain each has 40 labor hours available.If each country divides its time equally between the production of cheese and bread,then total production is
A) 20 units of cheese and 5 units of bread. 
B) 25 units of cheese and 7.5 units of bread. 
C) 40 units of cheese and 10 units of bread. 
D) 50 units of cheese and 15 units of bread.

Quizplus · Accepted Answer

As each country has 40 hours of labor available, they each have 20 hours to allocate to each product. Using the production possibilities table, we can see that with these time allocations, England can produce 10 units of cheese and 5 units of bread, while Spain can produce 15 units of cheese and 2.5 units of bread. Adding these quantities together gives a total production of 25 units of cheese and 7.5 units of bread. Therefore, the correct answer is choice B.

Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese