Australia and New Zealand both produce wool and wine. Australia can either produce 200 litres of wine or 40 tonnes of wool per week. New Zealand can either produce 40 litres of wine or 10 tonnes of wool per week. Australia’s opportunity cost of producing 1 ton of wool is equal to: (4 marks) A 200 litres of wine. B 50 litres of wine. C 40 litres of wine. D 5 litres of wine.
Australia and New Zealand both produce wool and wine. Australia can either produce 200 litres of wine or 40 tonnes of wool per week. New Zealand can either produce 40 litres of wine or 10 tonnes of wool per week. Australia’s opportunity cost of producing 1 ton of wool is equal to: (4 marks) A 200 litres of wine. B 50 litres of wine. C 40 litres of wine. D 5 litres of wine.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 19CTQ: Look at Exercise 33.2. Compute the opportunity costs of producing sweaters and wine in both France...
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20. Australia and New Zealand both produce wool and wine. Australia can either produce 200 litres of wine or
40 tonnes of wool per week. New Zealand can either produce 40 litres of wine or 10 tonnes of wool per week.
Australia’s
A 200 litres of wine.
B 50 litres of wine.
C 40 litres of wine.
D 5 litres of wine.
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