Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium) According to the table on Production Possibilities for Italy and Belgium, the opportunity cost of 1 pound of pasta for Belgium is:
A) 5 pounds of linen.
B) 20 pounds of linen.
C) 1/4 pound of linen.
D) 4 pounds of linen.

Question

Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium) According to the table on Production Possibilities for Italy and Belgium, the opportunity cost of 1 pound of pasta for Belgium is:
A) 5 pounds of linen. 
B) 20 pounds of linen. 
C) 1/4 pound of linen. 
D) 4 pounds of linen.

Quizplus · Accepted Answer

According to the table, Belgium can produce either 20 pounds of linen or 5 pounds of pasta. Therefore, the opportunity cost of 1 pound of pasta for Belgium is 4 pounds of linen (20 pounds of linen divided by 5 pounds of pasta).