The following graph shows an example of the world consisting hypothetically of only two economies (USA and Canada) that can produce the only two
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The following graph shows an example of the world consisting hypothetically of only two economies (USA and Canada)

that can produce the only two goods (TVs and Cars), in the same period, with the same fixed amount of resources, with the same highest technologies available worldwide, and the assumption of linear production possibility curves (PPCs).


Screen Shot 2019-12-11 at 4.18.35 PM.png


Which of the following is true?

a. Opportunity cost of producing TVs is relatively higher in USA than in Canada.

b. Opportunity cost of producing TVs is relatively higher in Canada than in USA.

c. Opportunity cost of producing cars and TVs are equal in both USA and Canada.

d. There is no enough data to calculate the opportunity cost of producing TVs in both countries.

e. None of the above is true.

Screen Shot 2019-12-11 at 4.18.35 PM.png

Top Answer

b. Opportunity cost of... View the full answer

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