Question

Item 5: Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost for Canada is ___.

Answer 1

The opportunity cost for Canada will be comparatively high in the production of shoes.

Explanation:

An American worker can make 20 pairs of shoes or grow 100 apples per day.

A Canadian worker can produce 10 pairs of shoes or grow 20 apples per day.

In easy words, opportunity cost is defined as the value of ones next best alternative.

The opportunity cost for Canada will be comparatively high in the production of shoes.