The following question(s) relate(s) to the material in the addendum to Chapter 2. Use the production possibilities data for Lebos and Slavia below to answer the question(s).
Table 2-4

Refer to Table 2-4. Which of the following is correct?
A) In Lebos, the opportunity cost of producing one unit of food is equal to one unit of clothing.
B) In Slavia, the opportunity cost of producing one unit of food is equal to two units of clothing.
C) The opportunity cost of producing food in Lebos is less than the opportunity cost of producing food in Slavia.
D) All of the above are correct.

Question

The following question(s) relate(s) to the material in the addendum to Chapter 2. Use the production possibilities data for Lebos and Slavia below to answer the question(s).
Table 2-4

Refer to Table 2-4. Which of the following is correct?
A) In Lebos, the opportunity cost of producing one unit of food is equal to one unit of clothing. 
B) In Slavia, the opportunity cost of producing one unit of food is equal to two units of clothing. 
C) The opportunity cost of producing food in Lebos is less than the opportunity cost of producing food in Slavia. 
D) All of the above are correct.

Quizplus · Accepted Answer

Option A is correct because in Lebos, producing one unit of food means giving up one unit of clothing, which results in a trade-off. 
Option B is correct because in Slavia, producing one unit of food means giving up two units of clothing, which results in a higher opportunity cost. 
Option C is correct because according to the table, the opportunity cost of producing food in Lebos is 1, while in Slavia, it is 2. Thus, the opportunity cost of producing food in Lebos is less than the opportunity cost of producing food in Slavia. Therefore, all options are correct.

The Following Question(s) Relate(s) to the Material in the Addendum