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 China's opportunity cost of producing one pound of wheat?
A)0.04 units of a digital camera
B)4 digital cameras
C)25 digital cameras
D)40 digital cameras

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 China's opportunity cost of producing one pound of wheat?
A)0.04 units of a digital camera 
B)4 digital cameras 
C)25 digital cameras 
D)40 digital cameras

Quizplus · Accepted Answer

China's opportunity cost of producing one pound of wheat is the amount of digital cameras foregone if they choose to produce one more pound of wheat. To calculate this, we take the ratio of the labour hours required to produce one pound of wheat (10 hours) to the labour hours required to produce one digital camera (250 hours).

Opportunity cost of producing one pound of wheat in China = 10/250 = 0.04 units of a digital camera

Therefore, the answer is A) 0.04 units of a digital camera. There is only one correct answer for this question.

Table 26 Table 2