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 germany is ________.
a. 1/5 of a unit of computers
b. 5 units of computers
c. 1/4 of a unit of computers
d. 4 units of computers

Explanation:

Step1: Define opportunity cost

Opportunity cost of wheat = $\frac{\text{Computers produced}}{\text{Wheat produced}}$

Step2: Plug in Germany's values

Germany produces 5 computers, 20 wheat.
$\frac{5}{20} = \frac{1}{4}$

Answer:

c. 1/4 of a unit of computers