Use the following to answer questions:
Figure: Comparative Advantage
-(Figure: Comparative Advantage) The figure illustrates both the U.S. and Japanese production possibilities frontiers for TVs and wheat. Based on this information, which of the following is TRUE?
A) The opportunity cost of producing a TV in the United States is 1/3 of a bushel of wheat.
B) The opportunity cost of producing a TV in the United States is 900 bushels of wheat.
C) The opportunity cost of producing a TV in Japan is 2 bushels of wheat.
D) The opportunity cost of producing a bushel of wheat in Japan is 2 TVs.

Question

Use the following to answer questions:
Figure: Comparative Advantage 
-(Figure: Comparative Advantage) The figure illustrates both the U.S. and Japanese production possibilities frontiers for TVs and wheat. Based on this information, which of the following is TRUE?
A) The opportunity cost of producing a TV in the United States is 1/3 of a bushel of wheat. 
B) The opportunity cost of producing a TV in the United States is 900 bushels of wheat. 
C) The opportunity cost of producing a TV in Japan is 2 bushels of wheat. 
D) The opportunity cost of producing a bushel of wheat in Japan is 2 TVs.

Quizplus · Accepted Answer

The opportunity cost of producing a TV in Japan is 2 bushels of wheat, as indicated by the production possibilities frontier.

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