Exhibit 19-1

-In Exhibit 19-1, the opportunity cost of 1 t-shirt in the United States is

Question

Exhibit 19-1
 
-In Exhibit 19-1, the opportunity cost of 1 t-shirt in the United States is

Quizplus · Accepted Answer

The exhibit represents the production possibilities frontier for the United States (represented by the t-shirts) and a foreign country (represented by the rice). The slope of the PPF represents the opportunity cost of producing one unit of a good in terms of the other good. From the exhibit, the opportunity cost of 1 t-shirt in terms of rice is 1 ton of rice. Therefore, the correct answer is D.

Exhibit 19-1 -In Exhibit 19-1, the Opportunity Cost of 1 T-Shirt in of 1