Gce Model Questions Vol1 2025 Economics Question 4

Practice objective / multiple choice question 4 from the 2025 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2025 Economics Objective / Multiple Choice Easy Difficulty
Question 4 GCE_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A country can produce either wheat or cloth using all its resources. If it devotes all resources to wheat it can produce 100 units of wheat and 0 cloth; if it devotes all resources to cloth it can produce 0 wheat and 200 units of cloth. Currently the country produces 40 units of wheat and 80 units of cloth. What is the opportunity cost of producing one additional unit of wheat in terms of cloth?

Answer Options

Correct Answer A. 2 units of cloth
B. 3 units of cloth
C. 1.5 units of cloth
D. 4 units of cloth
Correct Answer
A
Correct Option:
2 units of cloth

About This Question

This is Gce Model Questions Vol1 2025 Economics Question 4. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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