The Figure Below Shows the Production Possibilities Frontiers for Rice

question 158

Multiple Choice

The figure below shows the production possibilities frontiers for rice and T-shirts for two countries, Costa Rica and United States. According to the figure below, in Costa Rica, the opportunity cost of 1 ton of rice is:​ ​
Figure 2.1
​

• A)1/2 of a T-shirt.
• B)3/4 of a T-shirt.
• C)1 T-shirt.
• D)11/2 T-shirts.
• E)2 T-shirts.

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Definitions:

Particular Good

A specific item or product that satisfies consumers' needs or wants, distinguishable from general categories or types of goods.

Market Price

The current price at which an asset or service can be bought or sold in a market.

Production Possibilities Curve

A graphical representation that shows the maximum number of goods or services that can be produced using limited resources efficiently.

Technology Fixed

A scenario in economic models where the level of technology is assumed to remain constant, ignoring any potential technological advancements or changes.