The following table shows the hourly output per worker measured as quarts of oli

Question

The following table shows the hourly output per worker measured as quarts of olive oil and pounds of pasta in Greece and Italy: Output per Hour of Work Olive Oil Pasta Greece Italy 12 The opportunity cost of producing one more quart of olive oil in Greece is 0.5 pounds of pasta. (Enter your response rounded to two decimal places) The opportunity cost of producing one more quart of olive olil in ltaly is 2 pounds of pasta. (Enter your response rounded to two decimal places,) The opportunity cost of producing one more pound of pasta in Greece is quarts of olive olil., Enter your response rounded to two decimal places)

Explanation / Answer

Greece can produce 6 quart of olive oil which is almost equal to 3 pounds of pasta

So for Greece , 6 quart of olive oil = 3 pounds of pasta

Which is

2 quart of olive oil = 1 pound of pasta

Or

1 quart of olive oil = 0.5 pound of pasta.

Similarly Italy , 6 quart of olive oil = 12 pounds of pasta

Which has an opportunity cost of

1 quart of olive oil = 2 pounds of pasta

Or

0.5 quart of olive oil = 1 pound of pasta

1) The opportunity cost of producing one more quart of olive oil in Greece is 0.5 pounds of pasta

2) The opportunity cost of producing one more quart of olive oil in Italy is 2 pounds of pasta

3) The opportunity cost of producing one more pound of pasta in Greece is 2 quart of olive oil

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