Table 3-3
Assume that Indonesia and India can switch between producing rice and bananas at a constant rate.

-Refer to Table 3-3.India's opportunity cost of producing rice is
A) 1/2 units of bananas.This is higher than Indonesia's opportunity cost of producing rice.
B) 1/2 units of bananas.This is lower than Indonesia's opportunity cost of producing rice.
C) 2 units of bananas.This is higher than Indonesia's opportunity cost of producing rice.
D) 2 units of bananas.This is lower than Indonesia's opportunity cost of producing rice.

Question

Table 3-3
Assume that Indonesia and India can switch between producing rice and bananas at a constant rate.
 
-Refer to Table 3-3.India's opportunity cost of producing rice is
A) 1/2 units of bananas.This is higher than Indonesia's opportunity cost of producing rice. 
B) 1/2 units of bananas.This is lower than Indonesia's opportunity cost of producing rice. 
C) 2 units of bananas.This is higher than Indonesia's opportunity cost of producing rice. 
D) 2 units of bananas.This is lower than Indonesia's opportunity cost of producing rice.

Quizplus · Accepted Answer

India's opportunity cost of producing rice is 2 units of bananas, which is higher than Indonesia's opportunity cost.

Table 3-3 Assume That Indonesia and India Can Switch Between Producing Rice