Asked by William Burgan on May 30, 2024
Verified
(Table: The Production Possibilities for Cars and Leather Boots) Use Table: The Production Possibilities for Cars and Leather Boots.The opportunity cost of producing one car in Mexico is:
A) 500 pairs of leather boots.
B) 1,000 pairs of leather boots.
C) different from the opportunity cost in the United States.
D) 2,000 pairs of leather boots,which is the same as in the United States.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision or choosing one option over another.
Leather Boots
Footwear made from the hide of animals, treated for durability and aesthetics, often chosen for protection or style.
Mexico
A country located in the southern portion of North America, known for its rich culture, history, and diverse landscapes.
- Perceive the concept of opportunity cost among various trade-offs and its estimation in sundry circumstances.
- Apply the concept of comparative and absolute advantages in international trade and their roles in determining trade patterns.
Verified Answer
AB
Arianna BasileJun 06, 2024
Final Answer :
A
Explanation :
The opportunity cost of producing one more of a good is what is given up from producing another good. In this case, if producing one car means producing 500 fewer pairs of leather boots, then the opportunity cost of one car is 500 pairs of leather boots.
Learning Objectives
- Perceive the concept of opportunity cost among various trade-offs and its estimation in sundry circumstances.
- Apply the concept of comparative and absolute advantages in international trade and their roles in determining trade patterns.