Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The amount of wheat Brazil could have produced instead
B
The time it takes to grow coffee
C
The total profit from selling coffee
D
The resources used to grow wheat in Peru
Understanding the Answer
Let's break down why this is correct
Answer
Opportunity cost is what you give up when you choose one option over another. If Brazil decides to produce more coffee instead of wheat, the opportunity cost is the amount of wheat that could have been produced instead. For example, if Brazil uses land and resources that could grow 100 tons of wheat to grow coffee, the opportunity cost is those 100 tons of wheat they will not have. This means they must consider how much coffee they need versus how much wheat they are losing. Understanding this helps Brazil make better choices about what crops to grow based on their needs and market demand.
Detailed Explanation
The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the time to grow coffee is the cost; It's easy to think about profit from coffee as a cost.
Key Concepts
Opportunity Costs
Comparative Advantage
Resource Allocation
Topic
Understanding Opportunity Costs
Difficulty
medium level question
Cognitive Level
understand
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