A nation can produce two products: tanks and autos. The table below is the nation's production possibilities: Refer to the above table. In moving from combination C to B, the opportunity cost of producing 100 more autos is:
A) 2 units of tanks
B) 1 unit of tanks
C) 850 units of autos
D) 1800 units of autos

Question

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities:  Refer to the above table. In moving from combination C to B, the opportunity cost of producing 100 more autos is:
A) 2 units of tanks 
B) 1 unit of tanks 
C) 850 units of autos 
D) 1800 units of autos

Quizplus · Accepted Answer

Moving from combination C to B involves producing 100 more autos while reducing tank production by 1 unit. Therefore, the opportunity cost of producing 100 more autos is 1 unit of tanks.

A Nation Can Produce Two Products: Tanks and Autos