Suppose that workers in Switzerland can produce only two goods: yo-yos or sweatshirts.The Swiss currency is the Swiss franc.How is the opportunity cost of yo-yos measured?

Question

Quizplus · Accepted Answer

The opportunity cost of producing yo-yos is measured in terms of the alternative good that must be given up, which in this case is sweatshirts. Therefore, it is measured in the number of sweatshirts that could have been produced instead of yo-yos.

Suppose That Workers in Switzerland Can Produce Only Two Goods