Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-5.The opportunity cost of 1 unit of cheese for Spain is
A) 1/2 unit of bread.
B) 2 hours of labor.
C) 2 units of bread.
D) 4 hours of labor.

Question

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
 
-Refer to Table 3-5.The opportunity cost of 1 unit of cheese for Spain is
A) 1/2 unit of bread. 
B) 2 hours of labor. 
C) 2 units of bread. 
D) 4 hours of labor.

Quizplus · Accepted Answer

The opportunity cost of producing 1 unit of cheese in Spain is the amount of bread that could have been produced with the same resources. If Spain gives up 1/2 unit of bread to produce 1 unit of cheese, then the opportunity cost is 1/2 unit of bread.

Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese