Table 2-5
Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-Refer to Table 2-5.What is Finland's opportunity cost of producing one cell phone?
A)0.25 board feet of lumber
B)4 board feet of lumber
C)12 board feet of lumber
D)16 board feet of lumber

Question

Table 2-5
  Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-Refer to Table 2-5.What is Finland's opportunity cost of producing one cell phone?
A)0.25 board feet of lumber 
B)4 board feet of lumber 
C)12 board feet of lumber 
D)16 board feet of lumber

Quizplus · Accepted Answer

According to the table, it takes Finland 16 hours to produce one cell phone and 4 hours to produce one board foot of lumber. Therefore, the opportunity cost of producing one cell phone in Finland is giving up the production of 4 board feet of lumber (16/4 = 4).

Table 2-5 Table 2-5 Shows the Number of Labor Hours