Refer to the information provided in Figure 33.1 below to answer the question(s) that follow. Figure 33.1
-Refer to Figure 33.1. The opportunity cost of producing a bushel of soybeans in the Canada is
A) 2/3 as much as that in the United States.
B) 1/2 as much as that in the United States.
C) twice as much as that in the United States.
D) the same as that in the United States.

Question

Refer to the information provided in Figure 33.1 below to answer the question(s) that follow.  Figure 33.1
-Refer to Figure 33.1. The opportunity cost of producing a bushel of soybeans in the Canada is
A) 2/3 as much as that in the United States. 
B) 1/2 as much as that in the United States. 
C) twice as much as that in the United States. 
D) the same as that in the United States.

Quizplus · Accepted Answer

The opportunity cost of producing a bushel of soybeans in Canada is 1/2 as much as that in the United States. This is because the opportunity cost of producing a bushel of soybeans in Canada is giving up the production of 1/2 bushel of wheat, while in the United States, it is giving up the production of 1 bushel of wheat. Therefore, Canada has a comparative advantage in producing soybeans, while the United States has a comparative advantage in producing wheat.

Refer to the Information Provided in Figure 33