📚 Learning Guide
Understanding Opportunity Costs
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If Brazil decides to produce more coffee instead of wheat, what could be the opportunity cost of this decision?

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Learning Path
Learning Path

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2
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Choose 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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