Figure: Wine and Wheat

question 188

Essay

Figure: Wine and Wheat
(Figure: Wine and Wheat) Look at the figure Wine and Wheat.What is the opportunity cost of moving from only producing wheat to only producing wine?
A.3 tons of wheat
B.6 tons of wheat
C.9 tons of wheat
D.15 tons of wheat

---

Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill within production or labor.

Comparative Advantage

The ability of an individual, firm, or country to produce a particular good or service at a lower opportunity cost than others, leading to a basis for beneficial trade.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, effectively the value of the opportunity lost.