Table 2-14
Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-14. What is Ireland's opportunity cost of producing one guitar?
A) 0.2 motorcycles
B) 5 motorcycles
C) 8 motorcycles
D) 32 motorcycles

Question

Table 2-14
  Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-14. What is Ireland's opportunity cost of producing one guitar?
A) 0.2 motorcycles 
B) 5 motorcycles 
C) 8 motorcycles 
D) 32 motorcycles

Quizplus · Accepted Answer

The opportunity cost of producing one guitar in Ireland is the amount of motorcycles that could have been produced instead. If Ireland can produce 5 guitars or 25 motorcycles, the opportunity cost of one guitar is 25/5 = 5 motorcycles.

Table 2-14 Table 2-14 Shows the Number of Labor Hours