Figure 34-6

-From the graph in Figure 34-6, the opportunity cost of a unit of bananas is
A)4 units of corn for England and 1/2 unit of corn for Honduras.
B)1/4 unit of corn for England and 2 units of bananas in England.
C)8 units of corn in England and 3 units of corn in Honduras.
D)4 units of corn in England and 12 units of corn in Honduras.

Question

Figure 34-6
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-From the graph in Figure 34-6, the opportunity cost of a unit of bananas is
A)4 units of corn for England and 1/2 unit of corn for Honduras. 
B)1/4 unit of corn for England and 2 units of bananas in England. 
C)8 units of corn in England and 3 units of corn in Honduras. 
D)4 units of corn in England and 12 units of corn in Honduras.

Quizplus · Accepted Answer

The opportunity cost of producing one more unit of a good is the amount of the other good that must be given up. In this case, for England to produce one more unit of bananas, it must give up 4 units of corn, and for Honduras to produce one more unit of bananas, it must give up 1/2 unit of corn. This is derived from the slope of the production possibility frontier in the graph.

Figure 34-6 ​

Figure 34-6