Moving between two points on a PPF,a country gains 6 cars and forgoes 3 trucks.The opportunity cost of 1 car is
A)3 trucks.
B)6 cars - 3 trucks.
C)1 car.
D)1/2 of a truck.
E)2 trucks.

Question

Quizplus · Accepted Answer

The opportunity cost of 1 car is the number of trucks forgone to produce one additional car. Here, 3 trucks are forgone to gain 6 cars, so the opportunity cost of 1 car is 3/6 = 1/2 of a truck.

Moving Between Two Points on a PPF,a Country Gains 6