The figure below shows the production possibilities frontiers for rice and T-shirts for two countries,Costa Rica and United States.According to the figure below,in Costa Rica,the opportunity cost of 1 ton of rice is:

A)1/2 of a T-shirt.
B)3/4 of a T-shirt.
C)1 T-shirt.
D)11/2 T-shirts.
E)2 T-shirts.

Question

The figure below shows the production possibilities frontiers for rice and T-shirts for two countries,Costa Rica and United States.According to the figure below,in Costa Rica,the opportunity cost of 1 ton of rice is:

A)1/2 of a T-shirt. 
B)3/4 of a T-shirt. 
C)1 T-shirt. 
D)11/2 T-shirts. 
E)2 T-shirts.

Quizplus · Accepted Answer

In Costa Rica, the opportunity cost of 1 ton of rice is the slope of the production possibilities frontier for rice, which is 2/3 of a T-shirt. Therefore, the best choice is to produce rice and trade with the United States to obtain T-shirts.

The Figure Below Shows the Production Possibilities Frontiers for Rice