-Refer to Exhibit 34-4.The opportunity cost of one unit of good B is __________ for country 1 and __________ for country 2.

Question

Quizplus · Accepted Answer

The opportunity cost of producing one unit of good B in terms of good A for each country can be determined by the slope of the production possibility frontier (PPF) or by the ratio of production capacities. Without the specific details from Exhibit 34-4, the general approach is to divide the amount of good A that could be produced by the amount of good B that could be produced (or vice versa) to find the opportunity cost. Choice B suggests that for country 1, the opportunity cost of producing one unit of good B is 2 units of good A, and for country 2, it is 1 unit of good A, which aligns with a common understanding of opportunity cost calculation.