Table 3-24
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-24. The opportunity cost of 1 unit of cheese for Spain is
A)1/2 unit of bread.
B)2 hours of labor.
C)2 units of bread.
D)4 hours of labor.

Question

Table 3-24
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
​  ​
-Refer to Table 3-24. The opportunity cost of 1 unit of cheese for Spain is
A)1/2 unit of bread. 
B)2 hours of labor. 
C)2 units of bread. 
D)4 hours of labor.

Quizplus · Accepted Answer

The opportunity cost of 1 unit of cheese for Spain is 2 units of bread. Therefore, Spain should produce bread instead of cheese as its opportunity cost for producing cheese is higher.

Table 3-24 Assume That England and Spain Can Switch Between Producing Cheese