A villager in Palampur spends 1 hour on weaving and 4 hours on agriculture. If each hour of agriculture produces 4 kg of wheat and each hour of weaving produces 2 kg of cloth, what is the opportunity cost of 1 hour of weaving in terms of wheat?
Answer
4 kg of wheat
The correct answer is 4 kg of wheat — Thus the opportunity cost is 4 kg of wheat.
Step-by-step solution
- Find wheat produced per hour of agriculture: 4 kg per hour.
- The opportunity cost of one hour of weaving equals the wheat that could have been produced in one hour of agriculture.
- Thus the opportunity cost is 4 kg of wheat.
Common mistake: Ignoring the comparison of production per hour or misreading the yields.
Concept tested: Opportunity cost
Published · How this solution was prepared and checked
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