Refer to Figure D According to this figure we can see that the marginal

# Refer to figure d according to this figure we can see

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28. Refer to Figure D. According to this figure we can see that the marginal opportunity cost of producing a boat in Singapore is equal to ____ while the marginal opportunity cost of producing a boat in Malaysia is equal to ___. 1.The loss of 250 million pounds of rice; the loss of 250 million pounds of rice. 2.The loss of 1 million pounds of rice; the loss of 1.25 million pounds of rice. 3.The loss of 2.5 million pounds of rice; the loss of 2 million pounds of rice. 4.The loss of 0.4 million pounds of rice; the loss of 0.5 million pounds of rice. 5.None of the above. 12 29. Refer to Figure D. According to this figure we can predict that _____ has the comparative advantage in the production of boats and ____ has the comparative advantage in the production of rice. 30. Refer to Figure D. If these two countries try to remain self-sufficient and produce all of their own consumption goods using half their resources for rice production and half for boat production, the world production level of rice will be ___ and the world production level of boats will be ____. (assume these are the only two countries in existence) 31. Refer to Figure D. If these two countries follow our economic trade advice, the world production of rice will ____ and the world production of boats will _____ from the levels produced in the previous question. 32. Suppose the State of Missouri has decided to build a dam on the Mississippi River in order to control seasonal flooding. The state estimates that the economic benefit of the reduced flooding will be \$10 million over the life of the dam. However, the dam will create a reservoir which will take productive farmland out of operation. The value of the loss of this farmland is expected to be \$8 million. If this is the only relevant information, then in order for this dam to be a good decision for the State of Missouri, the building cost must be _____. 1.greater than \$18 million 2.no more than \$2 million 3.less than \$8 million 4.equal to \$2 million 5.none of the above  • • • 