Moving between two points on a PPF,a country gains 6 automobiles and forgoes 3 trucks.The opportunity cost of 1 automobile is
A) 3 trucks.
B) 6 automobiles - 3 trucks.
C) 2 trucks.
D) 1/2 of a truck.
E) 1 automobile.

Question

Quizplus · Accepted Answer

The opportunity cost of 1 automobile is the number of trucks forgone to produce it. Here, 3 trucks are forgone to gain 6 automobiles, so the opportunity cost of 1 automobile is 3/6 = 1/2 of a truck.

Moving Between Two Points on a PPF,a Country Gains 6