Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.Which of the following is true? The opportunity cost of:
A)1 iPod in Country A is 2 tablets.
B)1 tablet in Country A is 2 iPods.
C)tablets is lower in Country A than Country B.
D)1 iPod in Country B is 2 tablets.

Question

Quizplus · Accepted Answer

In Country A, the opportunity cost of making 1 tablet is giving up the production of 2 iPods (since a worker in Country A can make either 10 iPods or 5 tablets each year). Therefore, the opportunity cost of 1 tablet is 2 iPods in Country A. This option is not mentioned in any other answer choices.

Suppose That a Worker in Country a Can Make Either