Table 2-9
Table 2-9 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.
-Refer to Table 2-9.What is Japan's opportunity cost of producing one wristwatch?
A)0.04 pounds of rice
B)4 pounds of rice
C)25 pounds of rice
D)40 pounds of rice

Question

Table 2-9
  Table 2-9 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.
-Refer to Table 2-9.What is Japan's opportunity cost of producing one wristwatch?
A)0.04 pounds of rice 
B)4 pounds of rice 
C)25 pounds of rice 
D)40 pounds of rice

Quizplus · Accepted Answer

Japan's opportunity cost of producing one wristwatch is the amount of rice it must forego. If the table suggests Japan can produce watches and rice at a certain rate, the opportunity cost is calculated by the inverse of the production rate of the other good (rice in this case) when producing one unit of the first good (a wristwatch).

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