Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
-Refer to Figure 3-5. What is the opportunity cost of one pair of ballet slippers for Fred?
A) 1/5 pair of tap shoes
B) 1/3 pair of tap shoes
C) 3/5 pair of tap shoes
D) 5/3 pairs of tap shoes

Question

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour. 
-Refer to Figure 3-5. What is the opportunity cost of one pair of ballet slippers for Fred?
A) 1/5 pair of tap shoes 
B) 1/3 pair of tap shoes 
C) 3/5 pair of tap shoes 
D) 5/3 pairs of tap shoes

Quizplus · Accepted Answer

The opportunity cost of one pair of ballet slippers for Fred is the amount of tap shoes he has to give up to produce one more pair of ballet slippers. From the given options, D) 5/3 pairs of tap shoes is the correct answer because if Fred produces one less pair of ballet slippers, he can produce 5/3 more pairs of tap shoes, indicating the opportunity cost of producing one pair of ballet slippers.

Figure 3-5 These Graphs Illustrate the Production Possibilities Available for Dancing Shoes