Assume a hypothetical economy where cloth and wheat can be produced. What is the opportunity cost of producing wheat in this economy?
A) the amount of cloth that must be given up to produce one more unit of wheat
B) the amount of money received by selling wheat
C) the number of workers it takes to produce all the wheat
D) More information is needed to answer the question.

Question

Quizplus · Accepted Answer

The opportunity cost of producing wheat is the amount of cloth that must be given up to produce one more unit of wheat. This is because the economy has limited resources and can only produce a certain amount of goods. Therefore, to produce more wheat, the economy must give up the production of some cloth, and the amount of cloth given up is the opportunity cost.

Assume a Hypothetical Economy Where Cloth and Wheat Can Be