Asked by
Josie Steinke
on Nov 05, 2024
Verified
Refer to Table 20.2. 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.
Opportunity Cost
Represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.
Tractor
A powerful vehicle designed primarily for agricultural use, to pull farm machinery and plough agricultural land.
Motorcycle
A two-wheeled motorized vehicle, widely used for both transportation and recreation.
- Determine the opportunity cost and recognize its significance in ascertaining comparative advantage.
Verified Answer
MN
Learning Objectives
- Determine the opportunity cost and recognize its significance in ascertaining comparative advantage.