Question 58
MediumOriginal questionThe table shows an economy's production possibilities.
| Combination | Wheat (tonnes) | Cloth (lakh m) |
|---|---|---|
| A | 0 | 20 |
| B | 1 | 18 |
| C | 2 | 15 |
| D | 3 | 11 |
| E | 4 | 6 |
What is the opportunity cost of the fourth tonne of wheat?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
The fourth tonne takes wheat from 3 to 4, from D to E.
Cloth falls from 11 to 6, so 5 lakh m are given up.
Worth noting
14 is the total cloth given up for all four tonnes (20 − 6).
- Concept
- Opportunity cost of an extra unit
- Typical timeTypical
- 70 s
- Your timeYours
- —
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