Table 2-12
Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.
-Refer to Table 2-12. What is Guatemala's opportunity cost of producing one canoe?
A) 1/6 of a sailboat
B) 2/3 of a sailboat
C) 6 sailboats
D) 7.5 sailboats

Question

Table 2-12
  Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.
-Refer to Table 2-12. What is Guatemala's opportunity cost of producing one canoe?
A) 1/6 of a sailboat 
B) 2/3 of a sailboat 
C) 6 sailboats 
D) 7.5 sailboats

Quizplus · Accepted Answer

The opportunity cost of producing one canoe in Guatemala is the amount of sailboats that could have been produced instead. If the table indicates that Guatemala can produce 6 canoes or 1 sailboat, then the opportunity cost of one canoe is 1/6 of a sailboat.

Table 2-12 Table 2-12 Shows the Number of Labor Hours