Use the following to answer questions :
-(Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. In Mexico the opportunity cost of producing 40 tractors is _____ barrels of crude oil.

Question

Use the following to answer questions : 
-(Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. In Mexico the opportunity cost of producing 40 tractors is _____ barrels of crude oil.

Quizplus · Accepted Answer

From the table, we can see that in order to produce 40 tractors, Mexico would have to give up producing 120,000 barrels of crude oil. Therefore, the opportunity cost of producing 40 tractors is 120,000 barrels of crude oil. The best choice would be option C.

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