Table 2.8

Table 2.8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2.8. What is Ireland's opportunity cost of producing one guitar?
A)0.2 motorcycle
B)5 motorcycles
C)8 motorcycles
D)32 motorcycles

Question

Table 2.8
  
Table 2.8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2.8. What is Ireland's opportunity cost of producing one guitar?
A)0.2 motorcycle 
B)5 motorcycles 
C)8 motorcycles 
D)32 motorcycles

Quizplus · Accepted Answer

The opportunity cost of producing one guitar is the amount of motorcycles that could have been produced instead. If Ireland can produce 5 guitars or 25 motorcycles, the opportunity cost of one guitar is 25/5 = 5 motorcycles.

Table 2.8 Table 2.8 Shows the Number of Labour Hours Required to of Labour