Table 2.6
$$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { One Digital } \
\text { Camera }
\end{array} & \text { Wheat (per kilogram) } \
\hline \text { China } & 100 \text { hours } & 4 \text { hours } \
\hline \text { South Korea } & 60 \text { hours } & 3 \text { hours } \
\hline
\end{array}$$ Table 2.6 shows the number of labour hours required to produce a digital camera and a kilogram of wheat in China and South Korea.
-Refer to Table 2.6.What is China's opportunity cost of producing 1 kilogram of wheat?

Question

Table 2.6
 $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { One Digital } \
\text { Camera }
\end{array} & \text { Wheat (per kilogram) } \
\hline \text { China } & 100 \text { hours } & 4 \text { hours } \
\hline \text { South Korea } & 60 \text { hours } & 3 \text { hours } \
\hline
\end{array}$$ Table 2.6 shows the number of labour hours required to produce a digital camera and a kilogram of wheat in China and South Korea.
-Refer to Table 2.6.What is China's opportunity cost of producing 1 kilogram of wheat?

Quizplus · Accepted Answer

China's opportunity cost of producing 1 kilogram of wheat is the amount of digital cameras it forgoes. It takes 4 hours to produce 1 kg of wheat and 100 hours to produce 1 digital camera. Therefore, the opportunity cost is 4/100 = 0.04 digital cameras.

Table 26 Table 26 Shows the Number of Labour Hours Required to Produce