Question

he table shows an economy that produces education services and consumption goods. If the economy currently produces 250 graduates and 1,000 units of consumption goods, the opportunity cost ofone additional graduate is units of consumption goods graduates Education Consumption goods services Possibility (graduates) ?

Answer 1

The opportunity cost of one additional graduate is the number of units of consumption goods that the economy has to give up to produce one more graduate.

Step-by-step explanation:

The opportunity cost of one additional graduate is the number of units of consumption goods that the economy has to give up to produce one more graduate. In this case, the economy currently produces 250 graduates and 1,000 units of consumption goods. To find the opportunity cost, we can divide the change in the number of graduates by the change in the number of consumption goods. Since we are considering one additional graduate, the change in the number of graduates is 1. The change in the number of consumption goods is the opportunity cost.

For example, if producing one more graduate requires giving up 5 units of consumption goods, then the opportunity cost of one additional graduate is 5 units of consumption goods. This means that in order to produce one more graduate, the economy has to reduce the production of consumption goods by 5 units.