Table 3-2
Assume that England and Holland can switch between producing milk and oats at a constant rate.
-Refer to Table 3-2. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Holland. If we were to do this, measuring milk along the horizontal axis, then
A)the slope of England's production possibilities frontier would be -10/4 and the slope of Holland's production possibilities frontier would be -4/3.
B)the slope of England's production possibilities frontier would be -4/10 and the slope of Holland's production possibilities frontier would be -3/4.
C)the slope of England's production possibilities frontier would be 10/4 and the slope of Holland's production possibilities frontier would be 4/3.
D)the slope of England's production possibilities frontier would be 4/10 and the slope of Holland's production possibilities frontier would be 3/4.

Question

Table 3-2
Assume that England and Holland can switch between producing milk and oats at a constant rate. 
-Refer to Table 3-2. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Holland. If we were to do this, measuring milk along the horizontal axis, then
A)the slope of England's production possibilities frontier would be -10/4 and the slope of Holland's production possibilities frontier would be -4/3. 
B)the slope of England's production possibilities frontier would be -4/10 and the slope of Holland's production possibilities frontier would be -3/4. 
C)the slope of England's production possibilities frontier would be 10/4 and the slope of Holland's production possibilities frontier would be 4/3. 
D)the slope of England's production possibilities frontier would be 4/10 and the slope of Holland's production possibilities frontier would be 3/4.

Quizplus · Accepted Answer

The slope of a production possibilities frontier measures the opportunity cost of producing one good in terms of the other. In this case, the opportunity cost of producing one more unit of milk is the amount of oats that must be given up. For England, to produce one more unit of milk, it must give up 4 units of oats (from 20 to 16), so the slope of its production possibilities frontier is -4/10. For Holland, to produce one more unit of milk, it must give up 3 units of oats (from 6 to 3), so the slope of its production possibilities frontier is -3/4.

Table 3-2 Assume That England and Holland Can Switch Between Producing Milk