Table 3-1
$\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make } 1 \mathrm{~kg} \text { of: }&&\text { Kgs produced in } 20 \text { hours: }\
\hline & \text { Meat } & \text { Potatoes } & \text { Meat } & \text { Potatoes } \
\hline \text { Potato farmer } & 10 & 5 & 2 & 4 \
\hline \text { Zattle farmer } & 4 & 1 & 5 & 20 \
\hline
\end{array}$
-Refer to Table 3-1.For the potato farmer, the opportunity cost of 1 kg of meat is:
A)eight hours of labour
B)four hours of labour
C)2 kg of potatoes
D)1/2 kg of potatoes

Question

Table 3-1
 $\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make } 1 \mathrm{~kg} \text { of: }&&\text { Kgs produced in } 20 \text { hours: }\
\hline & \text { Meat } & \text { Potatoes } & \text { Meat } & \text { Potatoes } \
\hline \text { Potato farmer } & 10 & 5 & 2 & 4 \
\hline \text { Zattle farmer } & 4 & 1 & 5 & 20 \
\hline
\end{array}$
-Refer to Table 3-1.For the potato farmer, the opportunity cost of 1 kg of meat is:
A)eight hours of labour
B)four hours of labour
C)2 kg of potatoes
D)1/2 kg of potatoes

Quizplus · Accepted Answer

According to Table 3-1, the potato farmer can produce 2 kg of potatoes in the same amount of time he takes to produce 1 kg of meat. Therefore, the opportunity cost of 1 kg of meat for the potato farmer is 2 kg of potatoes. It would make sense for the potato farmer to produce more of what he has a comparative advantage in, which is potatoes, and trade for meat with another farmer who has a comparative advantage in producing meat. This would result in a more efficient allocation of resources and ultimately lead to more goods and services being produced overall.

Table 3-1 -Refer to Table 3-1