Table 2-9

Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.
-Refer to Table 2-9.What is Honduras's opportunity cost of producing one canoe?
A)1/5 of a sailboat
B)1.5 sailboats
C)5 sailboats
D)6 sailboats

Question

Table 2-9
  
Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.
-Refer to Table 2-9.What is Honduras's opportunity cost of producing one canoe?
A)1/5 of a sailboat 
B)1.5 sailboats 
C)5 sailboats 
D)6 sailboats

Quizplus · Accepted Answer

According to the table, producing one canoe in Honduras requires 30 labor hours, while producing a sailboat requires 150 labor hours. Therefore, the opportunity cost of producing one canoe in Honduras is giving up the production of 1/5 of a sailboat (150/30 = 5, 1/5 of 5 = 1). Option A is the correct answer.

Table 2-9 Table 2-9 Shows the Number of Labor Hours Required to of Labor