Table 1.416

Table 1.4: Production Possibilities Schedule
Choice	Good A	Good B
1 2 3 4 5	100 90 70 40 0	0 20 40 60 80

According to the production possibilities schedule in Table 1.4, which of the following statements is true?

Group of answer choices

A)All of these

B)If one moves from choice 1 to choice 2, the opportunity cost of 20 more units of good B is 10 units of good A.

C)If one moves from choice 3 to choice 4, the opportunity cost of 20 more units of good B is 30 units of good A.

D)If one moves from choice 2 to choice 3, the opportunity cost of 20 more units of good B is 20 units of good A.

E)There are increasing opportunity costs associated with producing more of good B.

QUESTION 2

The table given below represents butter and ham production by two countries Norway and Sweden. Table 2.5

Time Spent Making Butter		Norway	Sweden
100%	Butter	5	100
0%	Ham	10	100

According to Table 2.5, Norway has a comparative advantage in the production of _____ and an absolute advantage in the production of _____.

Group of answer choices

A. ham; butter

B. butter; ham

C. ham; none of the goods

D. none of the goods; butter

E. butter and ham; butter