Consider two points on the PPF: point A,at which there are 50 apples and 40 pears,and point B,at which there are 46 apples and 41 pears.If the economy is currently at point A,the opportunity cost of moving to point B is
A) 1 pear.
B) 4 apples.
C) 3 apples.
D) 41 pears.

Question

Quizplus · Accepted Answer

The opportunity cost of moving from point A to point B can be calculated by finding the difference between the two points. Moving from point A to B means sacrificing 4 apples (50-46) to gain 1 pear (41-40). Therefore, the opportunity cost of moving from point A to B is 4 apples per 1 pear, or simply 4 apples. Since there is only one option that has 4 apples as the opportunity cost, the best choice is B.

Consider Two Points on the PPF: Point A,at Which There