Multiple Choice
Currently, a farmer can either grow 40 bushels of wheat or 120 bushels of corn per acre. If he were able to trade 70 bushels of corn for 30 bushels of wheat, would he be better off or worse off?
A) worse off, because his opportunity cost of wheat would increase from 2.33 bushels of corn to 3 bushels of corn
B) better off, because his opportunity cost of wheat would fall from 80 bushels to 50 bushels
C) better off, because his opportunity cost of wheat would fall from 3 bushels of corn to 2.33 bushels
D) worse off, because his opportunity cost of wheat would increase from 50 bushels of corn to 80 bushels of corn
Correct Answer:

Verified
Correct Answer:
Verified
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