Use the following to answer questions :
Figure 1-4
-In Figure 1-4, what is Country A's cost of producing 1 unit of y in terms on x?
A)The same as country B's opportunity cost of producing 1 unit of y in terms of x.
B)Less than country B's opportunity cost of producing 1 unit of y in terms of x.
C)More than country B's opportunity cost of producing 1 unit of y in terms of x.
D)4 units of x.
E)None of the above.

Question

Use the following to answer questions :
Figure 1-4 
-In Figure 1-4, what is Country A's cost of producing 1 unit of y in terms on x?
A)The same as country B's opportunity cost of producing 1 unit of y in terms of x. 
B)Less than country B's opportunity cost of producing 1 unit of y in terms of x. 
C)More than country B's opportunity cost of producing 1 unit of y in terms of x. 
D)4 units of x. 
E)None of the above.

Quizplus · Accepted Answer

Country A's opportunity cost of producing 1 unit of y is 2 units of x, while Country B's opportunity cost of producing 1 unit of y is 4 units of x. Therefore, Country A's opportunity cost is less than Country B's opportunity cost.

Use the Following to Answer Questions