Use the following to answer questions:
Figure: Computers and Books
-(Figure: Computers and Books) According to the figure, the opportunity cost of producing books:
A) is higher for country A than for country B.
B) is higher for country B than for country A.
C) is the same for countries A and B.
D) cannot be determined.

Question

Use the following to answer questions:
Figure: Computers and Books 
-(Figure: Computers and Books) According to the figure, the opportunity cost of producing books:
A) is higher for country A than for country B. 
B) is higher for country B than for country A. 
C) is the same for countries A and B. 
D) cannot be determined.

Quizplus · Accepted Answer

The opportunity cost of producing books is the number of computers that must be given up to produce one more book. In country A, 1 computer must be given up to produce 1 book, while in country B, 2 computers must be given up to produce 1 book. Therefore, the opportunity cost of producing books is higher for country B than for country A.

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