Figure 3-21
Uzbekistan's Production Possibilities Frontier
Azerbaijan's Production Possibilities Frontier
-Refer to Figure 3-21.Azerbaijan's opportunity cost of one nail is
A)1/4 bolt and Uzbekistan's opportunity cost of one nail is 1/2 bolt.
B)1/4 bolt and Uzbekistan's opportunity cost of one nail is 2 bolts.
C)4 bolts and Uzbekistan's opportunity cost of one nail is 1/2 bolt.
D)4 bolts and Uzbekistan's opportunity cost of one nail is 2 bolts.

Question

Figure 3-21
Uzbekistan's Production Possibilities Frontier
Azerbaijan's Production Possibilities Frontier  
-Refer to Figure 3-21.Azerbaijan's opportunity cost of one nail is
A)1/4 bolt and Uzbekistan's opportunity cost of one nail is 1/2 bolt. 
B)1/4 bolt and Uzbekistan's opportunity cost of one nail is 2 bolts. 
C)4 bolts and Uzbekistan's opportunity cost of one nail is 1/2 bolt. 
D)4 bolts and Uzbekistan's opportunity cost of one nail is 2 bolts.

Quizplus · Accepted Answer

The opportunity cost is calculated by comparing the production possibilities of nails and bolts for each country. Azerbaijan's opportunity cost of one nail is 1/4 bolt, and Uzbekistan's opportunity cost of one nail is 1/2 bolt.

Figure 3-21 Uzbekistan's Production Possibilities Frontier