Brazil can produce one unit of sugar cane for one unit of labor and one iPod for eight units of labor, and China can produce one unit of sugar cane for two units of labor and one iPod for four units of labor. What are each country's opportunity costs of producing iPods?
A) Brazil: 4 units of sugar cane; China: 2 units of sugar cane
B) Brazil: 8 units of sugar cane; China: 2 units of sugar cane
C) Brazil: 1/8 unit of sugar cane; China: 1/2 unit of sugar cane
D) Brazil: 1/2 unit of sugar cane; China: 1/2 unit of sugar cane

Question

Quizplus · Accepted Answer

Brazil's opportunity cost of producing one iPod is 8 units of sugar cane (since it takes 8 units of labor to produce an iPod, which could produce 8 units of sugar cane). China's opportunity cost of producing one iPod is 2 units of sugar cane (since it takes 4 units of labor to produce an iPod, which could produce 2 units of sugar cane).

Brazil Can Produce One Unit of Sugar Cane for One