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 bread for England is
A) 1/4 unit of cheese.
B) 1/4 hour of labor.
C) 4 units of cheese.
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 bread for England is
A) 1/4 unit of cheese. 
B) 1/4 hour of labor. 
C) 4 units of cheese. 
D) 4 hours of labor.

Quizplus · Accepted Answer

The opportunity cost of 1 unit of bread for England is 4 units of cheese. Therefore, England should specialize in producing cheese and trade with Spain to get bread at a lower opportunity cost.

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