Refer to the information provided in Figure 20.1 below to answer the question(s) that follow. Figure 20.1
-Refer to Figure 20.1. 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 20.1 below to answer the question(s) that follow.  Figure 20.1
-Refer to Figure 20.1. 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

Without access to Figure 20.1, the correct answer is determined by understanding the concept of opportunity cost in the context of comparative advantage. If the statement says that the opportunity cost of producing a bushel of soybeans in Canada is 1/2 as much as that in the United States, it implies that Canada gives up less of other goods to produce soybeans compared to the United States, suggesting Canada has a comparative advantage in producing soybeans. This interpretation is based on the principle that the opportunity cost of a good is what is foregone to produce that good.

Refer to the Information Provided in Figure 20