Quizzol

QUESTION:

Suppose a country's workers can produce 4 pens per hour or 12 pencils per hour. If there is no trade, ________.

a. the opportunity cost of 1 pen is 12 pencils

b. the opportunity cost of 1 pen is 4 pencils

c. the opportunity cost of 1 pen is 3 pencils

d. the opportunity cost of 1 pen is 1/3 of a pencil

e. the opportunity cost of 1 pen is 1/4 of a pencil

ANSWER:

c. the opportunity cost of 1 pen is 3 pencils

Posted by Cleveland on August 29, 2024