Refer to the information provided in Table 18.2 below to answer the questions that follow.
Table 18.2
-Refer to Table 18.2. In China, the opportunity cost of
A) a tractor is 1 motorcycle.
B) a motorcycle is 10 tractors.
C) a tractor is 10 motorcycles.
D) a motorcycle is 1/30 of a tractor.

Question

Refer to the information provided in Table 18.2 below to answer the questions that follow.
Table 18.2 
-Refer to Table 18.2. In China, the opportunity cost of
A) a tractor is 1 motorcycle. 
B) a motorcycle is 10 tractors. 
C) a tractor is 10 motorcycles. 
D) a motorcycle is 1/30 of a tractor.

Quizplus · Accepted Answer

The opportunity cost of an item is what you must give up to get that item. In this case, if China produces 1 tractor, it gives up the production of 10 motorcycles, making the opportunity cost of a tractor 10 motorcycles.

Refer to the Information Provided in Table 18