Table 3-3
$\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\
\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \
\hline \text { US } & 40 & 160 & 60 & 15 \
\hline \text { Europe } & 50 & 150 & 48 & 16 \
\hline
\end{array}$
-Refer to Table 3-3.The opportunity cost of one aeroplane for Europe is:
A)four cars
B)three cars
C)1/3 car
D)1/4 car

Question

Table 3-3
 $\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\
\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \
\hline \text { US } & 40 & 160 & 60 & 15 \
\hline \text { Europe } & 50 & 150 & 48 & 16 \
\hline
\end{array}$
-Refer to Table 3-3.The opportunity cost of one aeroplane for Europe is:
A)four cars
B)three cars
C)1/3 car
D)1/4 car

Quizplus · Accepted Answer

The opportunity cost of one item is what you give up to produce that item instead of another. In Europe, to produce one aeroplane, they must give up producing three cars, making the opportunity cost of one aeroplane three cars.

Table 3-3 -Refer to Table 3-3