Figure 3-2
Uzbekistan's Production Possibilities Frontier
Azerbaijan's Production Possibilities Frontier

-Refer to Figure 3-2.Azerbaijan's opportunity cost of one nail is
A) 1/4 bolt and Uzbekistan's opportunity cost of one nail is 1/2 bolt.
B) 1/4 bolt and Uzbekistan's opportunity cost of one nail is 2 bolts.
C) 4 bolts and Uzbekistan's opportunity cost of one nail is 1/2 bolt.
D) 4 bolts and Uzbekistan's opportunity cost of one nail is 2 bolts.
Correct Answer:
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Uzbekistan's Production Possibilities Frontier
Azerbaijan's Production Possibilities
Uzbekistan's Production Possibilities Frontier
Azerbaijan's Production Possibilities
Assume that Falda and Varick can