Asked by
Kuldeep Chauhan
on Oct 25, 2024
Verified
In a single year,the Netherlands can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Belgium can raise 50 tons of beef or produce 750 boxes of tulips.In autarky,the opportunity cost of 1 ton of beef in the Netherlands is:
A) 100 tons of beef.
B) 1,000 boxes of tulips.
C) 10 boxes of tulips.
D) 0.1 box of tulips.
Opportunity Cost
The value of the next best alternative foregone as the result of making a decision.
Autarky
A situation or policy whereby a country or economy is self-sufficient and does not engage in international trade.
Netherlands
The Netherlands is a country in Northwestern Europe known for its flat landscape, extensive canal systems, cycling routes, and tulip fields.
- Learn about the understanding of opportunity cost in several trade-offs and the process of calculating it in numerous environments.
- Apply the theories of comparative and absolute advantages in overseas trade and their ramifications in defining trade designs.
Verified Answer
FM
Learning Objectives
- Learn about the understanding of opportunity cost in several trade-offs and the process of calculating it in numerous environments.
- Apply the theories of comparative and absolute advantages in overseas trade and their ramifications in defining trade designs.