Table 2.6 Table 2.6 shows the number of labour hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2.6.What is South Korea's opportunity cost of producing one digital camera?
A)0.05 pounds of wheat
B)20 pounds of wheat
C)25 pounds of wheat
D)60 pounds of wheat

Question

Table 2.6  Table 2.6 shows the number of labour hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2.6.What is South Korea's opportunity cost of producing one digital camera?
A)0.05 pounds of wheat 
B)20 pounds of wheat 
C)25 pounds of wheat 
D)60 pounds of wheat

Quizplus · Accepted Answer

South Korea's opportunity cost of producing one digital camera is determined by how much wheat it could have produced instead. If the information in Table 2.6 indicates, for example, that South Korea can produce 20 pounds of wheat or 1 digital camera with the same resources, then the opportunity cost of producing one digital camera is 20 pounds of wheat.

Table 26 Table 2