Table 2-6
Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making wagons or making tricycles.
-Refer to Table 2-6.What is James's opportunity cost of making a wagon?
A)2 tricycles
B)1/2 of a wagon
C)1/2 of a tricycle
D)3/4 of a wagon

Question

Table 2-6
  Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making wagons or making tricycles.
-Refer to Table 2-6.What is James's opportunity cost of making a wagon?
A)2 tricycles 
B)1/2 of a wagon 
C)1/2 of a tricycle 
D)3/4 of a wagon

Quizplus · Accepted Answer

James's opportunity cost of making a wagon is the amount of the other good (tricycles) that he has to give up. If the table indicates that by making a wagon, he gives up the opportunity to make 2 tricycles, then the opportunity cost of a wagon for James is 2 tricycles.

Table 2-6 Table 2-6 Shows the Output Per Week of Week