Final answer:
The opportunity cost is a key economic concept that reflects the trade-offs of producing one good over another, as shown on the production possibility frontier. In this case, the United States' opportunity cost for producing one barrel of oil is two bushels of corn, while Saudi Arabia's is only 1/4 bushel of corn.
Step-by-step explanation:
The student's question asks about the opportunity cost of producing 1 pound of maize (corn). To answer this, we must refer to the concept of the production possibility frontier (PPF), which shows the trade-offs between producing two different goods. According to the provided information, in the United States, producing one barrel of oil has an opportunity cost of two bushels of corn.
In the context of the PPF, the slope, which is 1/2, reflects this relationship. For Saudi Arabia, the opportunity cost of producing one barrel of oil is even lower, at 1/4 of a bushel of corn. This concept highlights the choices and potential gains from trade between countries based on their relative opportunity costs.