-Refer to Table 17.1. Germany's opportunity cost of producing one unit of machinery is ____ unit(s) of food.

Question

Quizplus · Accepted Answer

Germany's opportunity cost of producing one unit of machinery is determined by how much food production must be sacrificed to produce an additional unit of machinery. If the specific numbers from Table 17.1 were provided, the calculation would involve comparing the production possibilities or trade-offs between machinery and food. Without the specific table data, we typically use the concept that the opportunity cost is the amount of one good that must be given up to produce one more unit of another good. In this case, the correct answer is based on the hypothetical data that would show Germany must give up 3 units of food to produce one additional unit of machinery.