A nation can manufacture either 10 units of product A or 4 units of product B. What is the opportunity cost of producing one unit of product B?

The International Economy And Globalization MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

The International Economy And Globalization

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Subject
The International Economy And Globalizationeconomics-mcqs › the-international-economy-and-globalization
Published
27 May 2019
Last updated
28 May 2026

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Explanation

The opportunity cost of producing one unit of product B is calculated by dividing the maximum production of product A by the maximum production of product B. Since the country can produce 10 units of A or 4 units of B, the opportunity cost of 1 unit of B equals 10 ÷ 4 = 2.5 units of A.

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