Refer to the information provided in Table 20.2 below to answer the question(s) that follow.
Table 20.2 $$\begin{array} { c c c c }
\hline & \text { China } &\quad\quad\quad\quad\quad\quad { \text { Thailand } } \
\text { Tractors } & \text { Motorcycles } & \text { Tractors } & \text { Motorcycles } \
\hline 0 & 300 & 0 & 300 \
5 & 250 & 5 & 225 \
10 & 200 & 10 & 150 \
15 & 150 & 15 & 75 \
20 & 100 & 20 & 0 \
25 & 50 & - & - \
30 & 0 & - & - \
\hline
\end{array}$$
-Refer to Table 20.2. In China, the opportunity cost of
A) a tractor is 1 motorcycle.
B) a motorcycle is 10 tractors.
C) a tractor is 10 motorcycles.
D) a motorcycle is 1/30 of a tractor.

Question

Refer to the information provided in Table 20.2 below to answer the question(s) that follow.
Table 20.2 $$\begin{array} { c c c c } 
\hline & \text { China } &\quad\quad\quad\quad\quad\quad  { \text { Thailand } } \
\text { Tractors } & \text { Motorcycles } & \text { Tractors } & \text { Motorcycles } \
\hline 0 & 300 & 0 & 300 \
5 & 250 & 5 & 225 \
10 & 200 & 10 & 150 \
15 & 150 & 15 & 75 \
20 & 100 & 20 & 0 \
25 & 50 & - & - \
30 & 0 & - & - \
\hline
\end{array}$$
-Refer to Table 20.2. In China, the opportunity cost of
A) a tractor is 1 motorcycle.
B) a motorcycle is 10 tractors.
C) a tractor is 10 motorcycles.
D) a motorcycle is 1/30 of a tractor.

Quizplus · Accepted Answer

The opportunity cost of a tractor in China can be calculated by the change in motorcycles divided by the change in tractors. From the table, moving from 0 to 5 tractors, motorcycles decrease from 300 to 250, a change of 50 motorcycles for 5 tractors. Therefore, the opportunity cost of 1 tractor is 50/5 = 10 motorcycles.

Refer to the Information Provided in Table 20 -Refer to Table 20