Use the figure below to answer the following questions.
Table 2.3.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers.
-Refer to Table 2.3.1.For Romulus, the opportunity cost of producing an additional unit of X is
A)3/2 units of Y.
B)4 units of Y.
C)1 unit of Y.
D)2 units of Y.
E)2/3 units of Y.

Question

Use the figure below to answer the following questions.
Table 2.3.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers. 
-Refer to Table 2.3.1.For Romulus, the opportunity cost of producing an additional unit of X is
A)3/2 units of Y. 
B)4 units of Y. 
C)1 unit of Y. 
D)2 units of Y. 
E)2/3 units of Y.

Quizplus · Accepted Answer

The opportunity cost of producing an additional unit of X in terms of Y is calculated by the slope of the production possibility frontier (PPF) or by comparing the trade-offs between producing one good over another. If the given choice suggests 3/2 units of Y for an additional unit of X, it means for every X produced, Romulus gives up 1.5 units of Y, indicating the opportunity cost. Without specific data from Table 2.3.1, this explanation follows the general principle of calculating opportunity costs in economics.

Use the Figure Below to Answer the Following Questions