Figure 2-6
-Refer to Figure 2-6.The opportunity cost of this economy moving from point I to point H is
A)120 pillows.
B)120 blankets.
C)120 blankets and 120 pillows.
D)200 blankets.

Question

Figure 2-6 
-Refer to Figure 2-6.The opportunity cost of this economy moving from point I to point H is
A)120 pillows. 
B)120 blankets. 
C)120 blankets and 120 pillows. 
D)200 blankets.

Quizplus · Accepted Answer

Moving from point I to point H means producing 120 more blankets and 120 fewer pillows. Therefore, the opportunity cost of this movement is the 120 pillows that could have been produced with the same amount of resources used to produce the additional 120 blankets. Therefore, the best choice is B, as it correctly identifies the opportunity cost as 120 blankets.

Figure 2-6 -Refer to Figure 2-6.The Opportunity Cost of This Economy Moving