Figure 3-8

-Refer to Figure 3-8.Chile's opportunity cost of one pound of soybeans is
A) 3/4 pound of coffee and Colombia's opportunity cost of one pound of soybeans is 1/2 pound of coffee.
B) 3/4 pound of coffee and Colombia's opportunity cost of one pound of soybeans is 2 pounds of coffee.
C) 4/3 pounds of coffee and Colombia's opportunity cost of one pound of soybeans is 1/2 pound of coffee.
D) 4/3 pounds of coffee and Colombia's opportunity cost of one pound of soybeans is 2 pounds of coffee.

Question

Figure 3-8
 
-Refer to Figure 3-8.Chile's opportunity cost of one pound of soybeans is
A) 3/4 pound of coffee and Colombia's opportunity cost of one pound of soybeans is 1/2 pound of coffee. 
B) 3/4 pound of coffee and Colombia's opportunity cost of one pound of soybeans is 2 pounds of coffee. 
C) 4/3 pounds of coffee and Colombia's opportunity cost of one pound of soybeans is 1/2 pound of coffee. 
D) 4/3 pounds of coffee and Colombia's opportunity cost of one pound of soybeans is 2 pounds of coffee.

Quizplus · Accepted Answer

The opportunity cost is calculated by comparing the trade-offs between producing soybeans and coffee. If Chile's opportunity cost of one pound of soybeans is 4/3 pounds of coffee, it means they give up 4/3 pounds of coffee to produce one pound of soybeans. Similarly, if Colombia's opportunity cost of one pound of soybeans is 2 pounds of coffee, they give up 2 pounds of coffee to produce one pound of soybeans.

Figure 3-8 -Refer to Figure 3-8.Chile's Opportunity Cost of One Pound of of One