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 the US 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 the US is:
A)four cars
B)three cars
C)1/3 car
D)1/4 car

Quizplus · Accepted Answer

The opportunity cost of producing one more of a good is the amount of the other good that must be given up. If the US can produce either 4 cars or 1 aeroplane, then the opportunity cost of 1 aeroplane is the 4 cars that could have been produced instead.

Table 3-3 -Refer to Table 3-3