The table given below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the Rest of the World per labor hour. If the U.K. and the Rest of the World begin to trade with each other, the international price of umbrellas will lie between _____ and _____. $$\begin{array} { l c c }
\hline\text { Productivity } & \text { In the United Kingdorn } & \text { In the Rest of the World } \
\hline \text { Umbrellas per labor hour } & 0.25 & 1 \
\text { Bushels of corn per labor hour } & 0.5 & 0.67\\hline
\end{array}$$
A)2/3 bushels of corn per umbrella; 2 bushels of corn per umbrella
B)2/3 bushels of corn per umbrella; 3/2 bushels of corn per umbrella
C)3/2 bushels of corn per umbrella; 3 of a unit of corn
D)1/3 bushels of corn per umbrella; 3 bushels of corn per umbrella

Question

The table given below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the Rest of the World per labor hour. If the U.K. and the Rest of the World begin to trade with each other, the international price of umbrellas will lie between _____ and _____. $$\begin{array} { l c c } 
\hline\text { Productivity } & \text { In the United Kingdorn } & \text { In the Rest of the World } \
\hline \text { Umbrellas per labor hour } & 0.25 & 1 \
\text { Bushels of corn per labor hour } & 0.5 & 0.67\\hline
\end{array}$$
A)2/3 bushels of corn per umbrella; 2 bushels of corn per umbrella
B)2/3 bushels of corn per umbrella; 3/2 bushels of corn per umbrella
C)3/2 bushels of corn per umbrella; 3 of a unit of corn
D)1/3 bushels of corn per umbrella; 3 bushels of corn per umbrella

Quizplus · Accepted Answer

The opportunity cost of producing an umbrella in the UK is 0.5 bushels of corn, while in the rest of the world it is 0.67 bushels of corn. Therefore, the international price of umbrellas will lie between 2/3 bushels of corn per umbrella and 2 bushels of corn per umbrella.

The Table Given Below Shows the Number of Umbrellas and Bushels