The Following Question(s) Relate(s) to the Material in the Addendum

question 94

Multiple Choice

The following question(s) relate(s) to the material in the addendum to Chapter 2. Use the production possibilities data for Lebos and Slavia below to answer the question(s) .
Table 2-4

Refer to Table 2-4. Which of the following is correct?

• A) In Lebos, the opportunity cost of producing one unit of food is equal to one unit of clothing.
• B) In Slavia, the opportunity cost of producing one unit of food is equal to two units of clothing.
• C) The opportunity cost of producing food in Lebos is less than the opportunity cost of producing food in Slavia.
• D) All of the above are correct.

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