The first two columns give the maximum daily amounts of beer and whiskey that Southern Ireland and Northern Ireland can produce when they completely specialize in one or another product.The last two columns give each country's consumption without trade. $$\begin{array} { l c c c c c c }
& \begin{array} { c }
\text { Maxirnumn } \
\text { beer } \
\text { production }
\end{array} & \begin{array} { c }
\text { Maxirnum } \
\text { whiskey } \
\text { production }
\end{array} & \begin{array} { c }
\text { Beer consumption } \
\text { without trade }
\end{array} & \begin{array} { c }
\text { Beer consurnption } \
\text { without trade }
\end{array} \
\begin{array} { l }
\text { Northem } \
\text { Irelard } \
\text { Southem }
\end{array} & 500 \mathrm { kegs } & 1500 \mathrm { kegs } & 300 \mathrm { kegs } & 600 \text { bottles } \
\text { Ireland } & 1200 \mathrm { kegs } & \mathbf { 8 0 0 } \mathrm { kegs } & 600 \mathrm { kegs } & 400 \text { bottles }
\end{array}$$ What is the price of beer without trade in Northern Ireland?
A)2 bottles of whiskey = 3 kegs of beer
B)5 bottles of whiskey = 12 kegs of beer
C)2 bottles of whiskey = 1 keg of beer
D)none of the options

Question

The first two columns give the maximum daily amounts of beer and whiskey that Southern Ireland and Northern Ireland can produce when they completely specialize in one or another product.The last two columns give each country's consumption without trade. $$\begin{array} { l c c c c c c } 
& \begin{array} { c } 
\text { Maxirnumn } \
\text { beer } \
\text { production }
\end{array} & \begin{array} { c } 
\text { Maxirnum } \
\text { whiskey } \
\text { production }
\end{array} & \begin{array} { c } 
\text { Beer consumption } \
\text { without trade }
\end{array} & \begin{array} { c } 
\text { Beer consurnption } \
\text { without trade }
\end{array} \
\begin{array} { l } 
\text { Northem } \
\text { Irelard } \
\text { Southem }
\end{array} & 500 \mathrm { kegs } & 1500 \mathrm { kegs } & 300 \mathrm { kegs } & 600 \text { bottles } \
\text { Ireland } & 1200 \mathrm { kegs } & \mathbf { 8 0 0 } \mathrm { kegs } & 600 \mathrm { kegs } & 400 \text { bottles }
\end{array}$$ What is the price of beer without trade in Northern Ireland?
A)2 bottles of whiskey = 3 kegs of beer
B)5 bottles of whiskey = 12 kegs of beer
C)2 bottles of whiskey = 1 keg of beer
D)none of the options

Quizplus · Accepted Answer

Without trade, Northern Ireland produces 500 kegs of beer or 1500 bottles of whiskey. The opportunity cost of 1 keg of beer is 3 bottles of whiskey (1500/500), so 2 bottles of whiskey equal 1 keg of beer.

The First Two Columns Give the Maximum Daily Amounts of Beer