Refer to the information provided in Table 33.1 below to answer the question(s) that follow.
Table 33.1
-Refer to Table 33.1. In Mexico, the opportunity cost of 1 bushel of bananas is
A) 1/2 bushel of oranges.
B) 1 bushels of oranges.
C) 2 bushel of oranges.
D) 5 bushels of oranges.

Question

Refer to the information provided in Table 33.1 below to answer the question(s) that follow.
Table 33.1 
-Refer to Table 33.1. In Mexico, the opportunity cost of 1 bushel of bananas is
A) 1/2 bushel of oranges. 
B) 1 bushels of oranges. 
C) 2 bushel of oranges. 
D) 5 bushels of oranges.

Quizplus · Accepted Answer

The opportunity cost of 1 bushel of bananas is the quantity of oranges given up to produce 1 bushel of bananas. In Mexico, to produce 1 bushel of bananas, 2 bushels of oranges must be given up, as shown in the table. Therefore, the opportunity cost of 1 bushel of bananas is 2 bushels of oranges, which is option B.

Refer to the Information Provided in Table 33