Table 3-3
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
-Refer to Table 3-3.We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea.If we were to do this,measuring cars along the horizontal axis,then
A)the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3.
B)the slope of Japan's production possibilities frontier would be -0.2 and the slope of Korea's production possibilities frontier would be -0.33.
C)the slope of Japan's production possibilities frontier would be 0.2 and the slope of Korea's production possibilities frontier would be 0.33.
D)the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

Question

Table 3-3
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. 
-Refer to Table 3-3.We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea.If we were to do this,measuring cars along the horizontal axis,then
A)the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3. 
B)the slope of Japan's production possibilities frontier would be -0.2 and the slope of Korea's production possibilities frontier would be -0.33. 
C)the slope of Japan's production possibilities frontier would be 0.2 and the slope of Korea's production possibilities frontier would be 0.33. 
D)the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

Quizplus · Accepted Answer

To draw a production possibilities frontier, we need to calculate the opportunity cost of producing one good in terms of the other. The opportunity cost is the ratio of the units of one good that must be given up to produce one more unit of the other good. For Japan, the opportunity cost of producing one airplane is 5/1=5 cars. For Korea, the opportunity cost of producing one airplane is 3/1=3 cars. Therefore, the slope of Japan's production possibilities frontier would be -5/1=-0.2 (measuring cars on the horizontal axis) and the slope of Korea's production possibilities frontier would be -3/1=-0.33.

Table 3-3 Assume That Japan and Korea Can Switch Between Producing Cars