Multiple Choice
Table 3-34
Assume that Indonesia and India can switch between producing rice and bananas at a constant rate.
-Refer to Table 3-34. Indonesia's opportunity cost of producing bananas is
A) 2.5 units of rice. This is higher than India's opportunity cost of producing bananas.
B) 2.5 units of rice. This is lower than India's opportunity cost of producing bananas.
C) 2/5 units of rice. This is higher than India's opportunity cost of producing bananas.
D) 2/5 units of rice. This is lower than India's opportunity cost of producing bananas.
Correct Answer:
Verified
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