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Figure: PPF Mexico & United States
-(Figure: PPF Mexico & United States) Use the figure in which both Mexico and the United States each have 24 units of labor. The opportunity costs of producing one computer are:
A) six shirts for Mexico and one shirt for the United States.
B) 1/6 of a shirt for both Mexico and the United States.
C) one shirt for Mexico and 1/6 of a shirt for the United States.
D) six shirts for both Mexico and the United States.

Question

Use the following to answer questions:
Figure: PPF Mexico & United States 
-(Figure: PPF Mexico & United States) Use the figure in which both Mexico and the United States each have 24 units of labor. The opportunity costs of producing one computer are:
A) six shirts for Mexico and one shirt for the United States. 
B) 1/6 of a shirt for both Mexico and the United States. 
C) one shirt for Mexico and 1/6 of a shirt for the United States. 
D) six shirts for both Mexico and the United States.

Quizplus · Accepted Answer

The opportunity cost of producing one computer is the amount of shirts that could have been produced instead. For Mexico, it is six shirts, and for the United States, it is one shirt.

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