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. Calculate the opportunity cost of producing an umbrella in the Rest of the World. $$\begin{array} { | c | c | c | }
\hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \
\hline \text { l umbrella } & 3.00 & 2.00 \
\hline \text { 1 bushel of corn} & 1.00 & 0.25 \
\hline
\end{array}$$
A)1/8 of a bushel of corn
B)1/3 of a bushel of corn
C)3 bushels of corn
D)8 bushels of corn

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. Calculate the opportunity cost of producing an umbrella in the Rest of the World. $$\begin{array} { | c | c | c | } 
\hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \
\hline \text { l umbrella } & 3.00 & 2.00 \
\hline \text { 1 bushel of corn} & 1.00 & 0.25 \
\hline
\end{array}$$
A)1/8 of a bushel of corn
B)1/3 of a bushel of corn
C)3 bushels of corn
D)8 bushels of corn

Quizplus · Accepted Answer

The opportunity cost of producing an umbrella in the Rest of the World is calculated by dividing the labor hours required to make 1 umbrella by the labor hours required to make 1 bushel of corn in the Rest of the World: $2.00 \div 0.25 = 8$. Therefore, the opportunity cost is 8 bushels of corn.

The Table Given Below Shows the Number of Labor Hours