Question

the following table shows the units of output a worker can produce per month in germany and poland. use this table to answer the question.
wheat\tcomputers
germany\t20\t5
poland\t8\t4
the opportunity cost of 1 unit of wheat in poland is ________
a. 4 units of computers
b. 2 units of computers
c. $\frac{1}{2}$ of a unit of computers
d. $\frac{1}{4}$ of a unit of computers

Explanation:

Step1: Define opportunity cost formula

Opportunity cost of 1 unit of wheat = $\frac{\text{Units of computers produced}}{\text{Units of wheat produced}}$

Step2: Plug in Poland's production values

Poland produces 4 computers and 8 units of wheat.
$\text{Opportunity cost} = \frac{4}{8} = \frac{1}{2}$

Answer:

c. 1/2 of a unit of computers