If Germany Used All Its Resources to Produce Bread, Suppose

question 144

Multiple Choice

If Germany used all its resources to produce bread, suppose it could produce 40 million loaves of bread. If it used all its resources to produce milk, it could produce 20 million gallons of milk. Based on this, Germany's opportunity cost of producing a _____ is _____.

• A) loaf of bread; 1/2 a gallon of milk
• B) loaf of bread; 2 gallons of milk
• C) gallon of milk; 1/2 a loaf of bread
• D) gallon of milk; 1 loaf of bread

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