Assume Russia and the United States each produce only two goods,tanks and automobiles.The values in Table 17.1 represent the maximum amount of each good that can be produced using existing resources.
Table 17.1 - Full-employment output of goods
-Based on the information in Table 17.1,the opportunity cost of producing 1 tank in the United States is:

Question

Assume Russia and the United States each produce only two goods,tanks and automobiles.The values in Table 17.1 represent the maximum amount of each good that can be produced using existing resources.
Table 17.1 - Full-employment output of goods  
-Based on the information in Table 17.1,the opportunity cost of producing 1 tank in the United States is:

Quizplus · Accepted Answer

The opportunity cost of producing 1 tank in the United States is the amount of another good that must be given up to produce that tank. If the table shows, for example, that the U.S. can produce 2 tanks or 4 automobiles with the same resources, then producing 1 tank means giving up the production of 2 automobiles.

Assume Russia and the United States Each Produce Only Two