Exhibit 34-6
-Refer to Exhibit 34-6.The opportunity cost of 1 unit of cheese in terms of units of wine is __________ for country B.
A)1
B)5
C)10
D)15

Question

Exhibit 34-6 
-Refer to Exhibit 34-6.The opportunity cost of 1 unit of cheese in terms of units of wine is __________ for country B.
A)1 
B)5 
C)10 
D)15

Quizplus · Accepted Answer

The opportunity cost of 1 unit of cheese in terms of units of wine is the amount of wine that country B must give up to produce 1 unit of cheese. From the exhibit, we can see that country B must give up 1 unit of wine to produce 1 unit of cheese. Therefore, the opportunity cost of 1 unit of cheese in terms of units of wine for country B is 1.

As for the best choice, it cannot be determined from the information given in the exhibit. The best choice would depend on the preferences and production capabilities of country B.

Exhibit 34-6 -Refer to Exhibit 34-6.The Opportunity Cost of 1 Unit of 1