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Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples ...

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Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples ...

Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.

Refer to the scenario above. The opportunity cost of producing 1 pound of apples in Zeta is ________.

▸ 2 pounds of oranges

▸ 3 pounds of oranges

▸ 1.5 pounds of oranges

▸ 0.67 pounds of oranges

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 53 times

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