Question

World's Largest Armies Rank Country Active 1 China 2,333,0002 United States 1,492,2003 India 1,325,0004 North Korea 1,190,0005 Russia 845,0006 Pakistan 643,8007 South Korea 630,0008 Iran 523,0009 Turkey 510,600 10 Vietnam 482,000 a. If the average North Korean farmer produces 1,800 pounds of food per year, what is the opportunity cost, in pounds of food, of North Korea's army? b. If a person needs at least 500 pounds of food per year to survive, how many people could have been fed with the forgone food output?

Answer 1

Answer:

a. 2,142 million pounds of food

b. 4,284,000 people

Explanation:

Opportunity costs are the additional costs or benefits lost resulting from choosing one activity or investment over another alternative.

In this case, a person from North Korea could be working as a farmer instead of being a soldier. Opportunity cost per soldier = 1,800 pounds of food per year. Total opportunity cost of North Korea's army = 1,800 pounds x 1,190,000 soldiers = 2,142 million pounds of food

this is equivalent to feeding 2,142,000,000 / 500 = 4,284,000 people