Neco Model Questions Vol1 2021 Economics Question 28

Practice objective / multiple choice question 28 from the 2021 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2021 Economics Objective / Multiple Choice Easy Difficulty
Question 28 NECO_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

A country can produce either 100 units of cloth or 200 units of food if it devotes all its resources to one good. Assuming constant opportunity cost, if the country decides to produce 40 units of cloth, (i) how many units of food can it produce, and (ii) what is the opportunity cost of one unit of cloth in terms of food.

Answer Options

Correct Answer A. Food produced = 120 units; opportunity cost of 1 cloth = 2 food.
B. Food produced = 140 units; opportunity cost of 1 cloth = 1.5 food.
C. Food produced = 80 units; opportunity cost of 1 cloth = 2.5 food.
D. Food produced = 100 units; opportunity cost of 1 cloth = 3 food.
Correct Answer
A
Correct Option:
Food produced = 120 units; opportunity cost of 1 cloth = 2 food.

About This Question

This is Neco Model Questions Vol1 2021 Economics Question 28. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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