1. In Exhibit 13, which country has the comparative advantage in the production of potatoes?
a. The United States because it requires fewer resources to produce potatoes
b. The United States because it has the lower opportunity cost of potatoes
c. Ireland because it requires fewer resources to produce potatoes
d. Ireland because it has the lower opportunity cost of potatoes
2. In Exhibit 13, the opportunity cost of wheat is
a. 1/3 ton of potatoes in the United States and ½ ton of potatoes in Ireland.
b. 2 tons of potatoes in the United States and 1 ½ tons of potatoes in Ireland.
c. 8 tons of potatoes in the United States and 4 tons of potatoes in Ireland.
d. 1/2 ton of potatoes in the United States and 2/3 ton of potatoes in Ireland.
3. In Exhibit 13, the opportunity cost of potatoes is
a. 1/2 ton of wheat in the United States and 2/3 ton of wheat in Ireland.
b. 2 tons of wheat in the United States and 1 ½ tons of wheat in Ireland.
c. 16 tons of wheat in the United States and 6 tons of wheat in Ireland.
d. 3 tons of wheat in the United States and 2 tons of wheat in Ireland.
4. If the countries in Exhibit 13 follow the principle of comparative advantage, the United States should
a. buy all of its potatoes from Ireland.
b. buy all of its wheat from Ireland.
c. buy all of its potatoes and wheat from Ireland.
d. produce both potatoes and wheat and not trade with Ireland.