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If Countries a and B Produce Only Either Rubber Bands

Question 289

Multiple Choice

If countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the accompanying production possibilities schedules.
 Country  Rubber Bands  Paper Clips A4080B1040\begin{array} { | c | c | c | } \hline \text { Country } & \text { Rubber Bands } & \text { Paper Clips } \\\hline A & 40 & 80 \\\hline B & 10 & 40 \\\hline\end{array} In country A the opportunity cost of 1 paper clip is


A) 2 rubber bands.
B) 1 rubber band.
C) 1/21 / 2 1/2 rubber band.
D) 1/41 / 4 1/4 rubber band.

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