In an Economy That Produces Only Popcorn and Tractors, Which

question 74

Multiple Choice

In an economy that produces only popcorn and tractors, which statement best describes the opportunity cost of an additional tractor?

• A) The purchase price of the new tractor.
• B) The value of the popcorn that must be given up so that the tractor may be produced.
• C) The purchase price of one unit of popcorn.
• D) The value of the tractor gained minus the value of the popcorn given up.