Question on: JAMB Economics - 2021
Use the table below to answer the question below;
The international production set for Nigeria and Austria is;
| Products | Nigeria | Austria |
| Cocoa | 20 tonnes | 12 tonnes |
| Lace | 1o metres | 8 metres |
The Opportunity cost ratio tor cocoa and lace Tor Austria and Nigeria is_______
A
1.5:2
B
2:2
C
2:1.5
D
0.5:1.5
Ask EduPadi AI for a detailed answer
Correct Option: A
Here's how to determine the opportunity cost ratio:
1. **Calculate the opportunity cost for Nigeria:**
* Nigeria can produce 20 tonnes of cocoa or 10 metres of lace.
* Opportunity cost of 1 tonne of cocoa = 10 metres of lace / 20 tonnes of cocoa = 0.5 metres of lace
* Opportunity cost of 1 metre of lace = 20 tonnes of cocoa / 10 metres of lace = 2 tonnes of cocoa
2. **Calculate the opportunity cost for Austria:**
* Austria can produce 12 tonnes of cocoa or 8 metres of lace.
* Opportunity cost of 1 tonne of cocoa = 8 metres of lace / 12 tonnes of cocoa =
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