Use the following to answer questions:
-(Table: Production Possibilities Schedule II) Look at the table Production Possibilities Schedule II. If an economy is producing at alternative W, the opportunity cost of producing at X is _____ unit(s) of consumer goods per period.
A)0
B)1
C)4
D)18

Question

Use the following to answer questions: 
-(Table: Production Possibilities Schedule II) Look at the table Production Possibilities Schedule II. If an economy is producing at alternative W, the opportunity cost of producing at X is _____ unit(s) of consumer goods per period.
A)0 
B)1 
C)4 
D)18

Quizplus · Accepted Answer

The opportunity cost is the amount of consumer goods forgone to produce more capital goods. Moving from W to X, the economy sacrifices 4 units of consumer goods.

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