The table given below shows the number of labor hours required to produce 1 umbrella and 1 bushel of corn in the U.K. and the Rest of the World. What is the opportunity cost of producing a bushel of corn in the United Kingdom? $$\begin{array} { | c | c | c | }
\hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \
\hline \text { l umbrella } & 3.00 & 2.00 \
\hline \text { 1 bushel of corn} & 1.00 & 0.25 \
\hline
\end{array}$$
A)1/8 of an umbrella
B)1/3 of an umbrella
C)3 umbrellas
D)8 umbrellas

Question

The table given below shows the number of labor hours required to produce 1 umbrella and 1 bushel of corn in the U.K. and the Rest of the World. What is the opportunity cost of producing a bushel of corn in the United Kingdom? $$\begin{array} { | c | c | c | } 
\hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \
\hline \text { l umbrella } & 3.00 & 2.00 \
\hline \text { 1 bushel of corn} & 1.00 & 0.25 \
\hline
\end{array}$$
A)1/8 of an umbrella
B)1/3 of an umbrella
C)3 umbrellas
D)8 umbrellas

Quizplus · Accepted Answer

The opportunity cost of producing a bushel of corn in the United Kingdom is the amount of the other good (umbrella) that could have been produced with the same resources. In the UK, 1 bushel of corn requires 1 labor hour, and 1 umbrella requires 3 labor hours. Therefore, the opportunity cost of 1 bushel of corn is 1/3 of an umbrella, since 1 labor hour could have contributed to 1/3 of the labor required for an umbrella.

The Table Given Below Shows the Number of Labor Hours