Refer to the information provided in Table 20.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 20.5 $\quad $$\quad $$\quad $$\quad $$\text { India} $$\quad $$\quad $$\quad $$\quad $ $\quad $$\text { Vietnam } $
$\begin{array} { c c c c }
\text { Cashews } & \text { Tea } & \text { Cashews } & \text { Tea } \
\hline 0 & 600 & 0 & 600 \
20 & 500 & 20 & 450 \
40 & 400 & 40 & 300 \
60 & 300 & 60 & 150 \
80 & 200 & 80 & 0 \
100 & 100 & - & - \
120 & 0 & - & - \
\hline
\end{array}$
-Refer to Table 20.5. In Vietnam, the opportunity cost of
A) a lb. of tea is 2/15 of a bushel of cashews.
B) a lb. of tea is 1/8 of a bushel of cashews.
C) a lb. of tea is 40 bushels of cashews.
D) a bushel of cashews is 4/3 of a lb. of tea.

Question

Refer to the information provided in Table 20.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 20.5 $\quad $$\quad $$\quad $$\quad $$\text { India} $$\quad $$\quad $$\quad $$\quad $ $\quad $$\text { Vietnam } $ 
$\begin{array} { c c c c } 
\text { Cashews } & \text { Tea } & \text { Cashews } & \text { Tea } \
\hline 0 & 600 & 0 & 600 \
20 & 500 & 20 & 450 \
40 & 400 & 40 & 300 \
60 & 300 & 60 & 150 \
80 & 200 & 80 & 0 \
100 & 100 & - & - \
120 & 0 & - & - \
\hline
\end{array}$
-Refer to Table 20.5. In Vietnam, the opportunity cost of
A) a lb. of tea is 2/15 of a bushel of cashews.
B) a lb. of tea is 1/8 of a bushel of cashews.
C) a lb. of tea is 40 bushels of cashews.
D) a bushel of cashews is 4/3 of a lb. of tea.

Quizplus · Accepted Answer

The opportunity cost of a lb. of tea in Vietnam can be calculated by looking at the change in cashews production as tea production decreases. From the table, producing 600 lbs. of tea requires giving up 0 bushels of cashews, and producing 450 lbs. of tea (a decrease of 150 lbs.) requires giving up 20 bushels of cashews. Therefore, the opportunity cost of 1 lb. of tea is 20 bushels of cashews / 150 lbs. of tea = 2/15 of a bushel of cashews.

Refer to the Information Provided in Table 20 \quad \quad

Refer to the Information Provided in Table 20 $\quad$ $\quad$