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Question
table 2 - 10 shows the output per day of two gardeners, george and jack. they can either devote their time to mowing lawns or cultivating gardens.
table 2 - 10
| george | jack | |
|---|---|---|
| gardens cultivated | 5 | 4 |
refer to table 2 - 10. what is georges opportunity cost of cultivating a garden?
a. one - half a lawn mowed
b. one - half a garden cultivated
c. two lawns mowed
d. two - thirds a garden cultivated
question 6
an increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a different point in the interior.
Step1: Recall opportunity - cost formula
Opportunity cost = $\frac{Quantity\ of\ forgone\ good}{Quantity\ of\ gained\ good}$
For George, when cultivating a garden, the forgone good is mowing lawns.
Step2: Identify relevant quantities
George can mow 10 lawns or cultivate 5 gardens in a day.
The opportunity cost of cultivating 1 garden for George is the number of lawns he gives up.
Opportunity cost of cultivating 1 garden = $\frac{Number\ of\ lawns\ mowed}{Number\ of\ gardens\ cultivated}$ = $\frac{10}{5}=2$ lawns mowed.
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Two lawns mowed