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.
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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
