Table 19-12
Production and
Consumption Production
Without Trade With Trade
$$\begin{array} { | l | l | l | l | l | l | }
\hline & \text { Swards } & \text { Beltr } & & \text { Svards } & \text { Beltr } \
\hline \text { Estoria } & 100 & 50 && 200 & 0 \
\hline \text { Morocco } & 50 & 40 && 0 & 120 \
\hline
\end{array}$$
Estonia and Morocco can produce both swords and belts.Table 19-12 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.Prior to trade,what was the opportunity cost to produce 1 sword in Estonia?

Question

Table 19-12
Production and
Consumption Production
Without Trade With Trade
 $$\begin{array} { | l | l | l | l | l | l | } 
\hline & \text { Swards } & \text { Beltr } & & \text { Svards } & \text { Beltr } \
\hline \text { Estoria } & 100 & 50 && 200 & 0 \
\hline \text { Morocco } & 50 & 40 && 0 & 120 \
\hline
\end{array}$$ 
Estonia and Morocco can produce both swords and belts.Table 19-12 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.Prior to trade,what was the opportunity cost to produce 1 sword in Estonia?

Quizplus · Accepted Answer

The opportunity cost of producing 1 sword in Estonia is the amount of belts that could have been produced instead. Without trade, Estonia produces 100 swords and 50 belts. Therefore, the opportunity cost of 1 sword is 50 belts / 100 swords = 1/2 of a belt.

Table 19-12 Production and Consumption Production Without Trade with Trade

Table 19-12
Production and
Consumption Production
Without Trade with Trade