Table 12 Shows the Hypothetical Trade-Off Between Different Combinations of Stealth

question 75

Multiple Choice

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity, ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers.
$\begin{array}{|c|c|c|c|c|}\hline & \begin{array}{c}\text { Number of } \\\text { Stealth } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Opportunity Cost of } \\\text { Stealth Bombers in } \\\text { Terms of B-1 } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Number of } \\\text { B-1 } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Opportunity Cost of B- } \\\text { 1 Bombers in Terms of } \\\text { Stealth Bombers }\end{array} \\\hline \text { A } & 195 & & 20 & \\\hline \text { B } & 180 & & 35 & \\\hline \text { C } & 150 & & 45 & \\\hline \text { D } & 100 & & 50 & \\\hline\end{array}$
Table 1.2
Production Possibilities for Bombers On the basis of your calculations in Table 1.2, if the economy is currently producing at point C, what is the opportunity cost of producing at point B?

• A) 45 B
• B) 35 Stealth bombers.
• C) 180 Stealth bombers.
• D) 10 B

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