A Country Produces Only Apples and Bananas

question 45

Multiple Choice

A country produces only apples and bananas. Moving from point A to point B along its production possibilities frontier, 5 apples are forgone and 4 bananas are gained. What is the opportunity cost of a banana?

• A) 1 banana
• B) 4 apples
• C) 4/5 of an apple
• D) 5/4 of an apple
• E) None of the above answers is correct.

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