The following table shows the units of output a worker can produce per month in country A and country B. The opportunity cost of a unit of electronics in Country B is

Question

The following table shows the units of output a worker can produce per month in country A and country B.  The opportunity cost of a unit of electronics in Country B is

Quizplus · Accepted Answer

According to the table, a worker in country B can produce 6 units of food or 2 units of electronics per month, while a worker in country A can produce 5 units of food or 1 unit of electronics per month. To calculate the opportunity cost of a unit of electronics in country B, we need to find out how many units of food country B would have to give up to produce one unit of electronics.

In country B, producing one unit of electronics means giving up the opportunity to produce two units of food (since a worker can produce either 6 units of food or 2 units of electronics per month). Therefore, the opportunity cost of one unit of electronics in country B is 2 units of food (the cost of what is given up).

Therefore, the correct answer is A) 3 units of food.

The Following Table Shows the Units of Output a Worker