Use the table below to answer the following questions.
Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y.
-Refer to Table 2.1.1.The opportunity cost of increasing the production of Y from 16 to 36 units is
A)4 units of X.
B)8 units of X.
C)12 units of X.
D)16 units of X.
E)20 units of Y.

Question

Use the table below to answer the following questions.
Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y. 
-Refer to Table 2.1.1.The opportunity cost of increasing the production of Y from 16 to 36 units is
A)4 units of X. 
B)8 units of X. 
C)12 units of X. 
D)16 units of X. 
E)20 units of Y.

Quizplus · Accepted Answer

The opportunity cost of producing more of one good is the amount of the other good that must be given up. In this case, to increase the production of Y from 16 to 36 units, the production of X decreases from 12 to 4 units, which is a decrease of 8 units of X. This represents the opportunity cost.

Use the Table Below to Answer the Following Questions