Table 3-5

-Refer to Table 3-5. What is the opportunity cost of 1 airplane for Japan?
A)4 cars.
B)3 cars.
C)1/3 car.
D)1/4 car.

Question

Table 3-5
 
-Refer to Table 3-5. What is the opportunity cost of 1 airplane for Japan?
A)4 cars. 
B)3 cars. 
C)1/3 car. 
D)1/4 car.

Quizplus · Accepted Answer

According to the table, Japan can produce either 4 cars or 1 airplane with the same amount of resources. Thus, the opportunity cost of 1 airplane for Japan is 4 cars. Therefore, Japan should only produce cars and trade for airplanes to take advantage of their comparative advantage in car production.

Table 3-5 -Refer to Table 3-5. What Is the Opportunity Cost of the Opportunity