Question

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost of one pair of shoes for the United States is _______, while the opportunity cost of one pair of shoes for Canada is _______.Multiple Choice a. 2.000 apples; 200 apples b. 5 apples; 2 apples c. 5 apple, ½ apple d. 100 apples; 20 apples

Answer 1

Answer:

The answers is: B) 5 apples; 2 apples

Explanation:

The opportunity cost is how much of one product you are giving up when you decide to take a different product.

In this case, for every pair of shoes an American worker decides to make, he is not growing 5 apples (100 apples / 20 pairs of shoes).

And for every pair of shoes a Canadian worker decides to make, he is not growing 2 apples (20 apples / 10 pairs of shoes).