CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

Units of output per work day:

Which of the following statements is correct?

In Japan, the opportunity cost of ______

A. 1 unit of food is 3 units of clothing.
B. 1 unit of food is 2 units of clothing.
C. 1 unit of clothing is 2 units of food.
Correct Answer: B

In Japan, it takes 1/3 of a work day to produce a unit of food. In the same length of time, it is possible for Japanese workers to produce 2 units of clothing. Consequently, the opportunity cost of 1 unit of food is 2 units of clothing.

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