B) If I buy a pizza, I will not be able to afford a movie.
C) Resources devoted to consumer goods production are not available for capital goods production.
D) The land a Manitoba farmer plants in wheat is not available for corn production.
118) Opportunity cost is best defined as:
A) the monetary price of any productive resource.
B) the amount of labour which must be used to produce one unit of any product.
C) the ratio of the prices of imported goods to the prices of exported goods.
D) the amount of one product which must be given up to produce one more unit of another product.
119) Production possibilities tables for two countries, North Cantina and South Cantina:
North Cantina
Production possibilities (alternatives)
North Cantina
Production possibilities (alternatives)
| A | B | C | D | E | F | |
| Capital goods | 5 | 4 | 3 | 2 | 1 | 0 |
| Consumer goods | 0 | 10 | 18 | 24 | 28 | 30 |
South Cantina
Production possibilities (alternatives)
| A | B | C | D | E | F | |
| Capital goods | 5 | 4 | 3 | 2 | 1 | 0 |
| Consumer goods | 0 | 8 | 15 | 21 | 25 | 27 |
Refer to the above tables. If South Cantina is producing at production alternative D, the opportunity cost of the third unit of capital goods is:
A) 3 units of consumer goods.
B) 4 units of consumer goods.
C) 5 units of consumer goods.
D) 6 units of consumer goods.
120) Production possibilities tables for two countries, North Cantina and South Cantina:
North Cantina
Production possibilities (alternatives)
North Cantina
Production possibilities (alternatives)