Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing one cuckoo clock in the United States is ________, and the opportunity cost of producing one cuckoo clock in Switzerland is ________.
A) 3 movies; 1.33 cuckoo clocks
B) 0.33 movies; 0.67 cuckoo clocks
C) 0.67 movie; 1.5 movies
D) 1.5 movies; 0.67 movie

Question

Quizplus · Accepted Answer

The opportunity cost of producing one item is the amount of another item that must be given up to produce it. If opportunity costs are constant, we calculate this by dividing the production possibilities. Without specific data from a table, we typically use the principle that if a country is more efficient in producing one good, it has a higher opportunity cost for producing the other good. Thus, the correct answer involves comparing the relative costs, where producing a cuckoo clock in one country costs more of the other good than in the other country.

Based on the Data in the Above Table, Then If