The table given below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the Rest of the World per labor hour. The opportunity cost of producing a bushel of corn in the United Kingdom is _____. $$\begin{array} { l c c }
\hline\text { Productivity } & \text { In the United Kingdorn } & \text { In the Rest of the World } \
\hline \text { Umbrellas per labor hour } & 0.25 & 1 \
\text { Bushels of corn per labor hour } & 0.5 & 0.67\\hline
\end{array}$$
A)2/3 of an umbrella
B)3 umbrellas
C)1/2 of an umbrella
D)2 umbrellas

Question

The table given below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the Rest of the World per labor hour. The opportunity cost of producing a bushel of corn in the United Kingdom is _____. $$\begin{array} { l c c } 
\hline\text { Productivity } & \text { In the United Kingdorn } & \text { In the Rest of the World } \
\hline \text { Umbrellas per labor hour } & 0.25 & 1 \
\text { Bushels of corn per labor hour } & 0.5 & 0.67\\hline
\end{array}$$
A)2/3 of an umbrella
B)3 umbrellas
C)1/2 of an umbrella
D)2 umbrellas

Quizplus · Accepted Answer

The opportunity cost of producing a bushel of corn in the United Kingdom is 1/2 of an umbrella because producing 0.5 bushels of corn per hour means sacrificing the production of 0.25 umbrellas per hour. Therefore, producing 1 bushel of corn means sacrificing 0.5 umbrellas, which is 1/2 of an umbrella.

The Table Given Below Shows the Number of Umbrellas and Bushels