What is the opportunity cost of changing production from point B to point A?
Understand the Problem
The question is asking about opportunity cost in economics. Specifically, it presents a Production Possibility Curve (PPC) and asks for the opportunity cost of moving production from one point (B) to another (A) on the curve. The opportunity cost represents the quantity of one good (tractors) that must be given up in order to produce more of another good (shoes).
Answer
d 10 tractors
The opportunity cost of changing production from point B to point A is 10 tractors. Thus the answer is d
Answer for screen readers
The opportunity cost of changing production from point B to point A is 10 tractors. Thus the answer is d
More Information
The Production Possibilities Curve (PPC) shows the maximum possible production combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed. Opportunity cost is what you give up to produce something else.
Tips
The most common mistake is to not read the graph correctly. Make sure you find the correct values on each axis before calculating the opportunity cost.
Sources
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