The table shows an economy that produces education services

The table shows an economy that produces education services and consumption goods. If the economy currently produces 250 graduates and 1,000 units of consumption goods, the opportunity cost ofone additional graduate is units of consumption goods graduates Education Consumption goods services Possibility (graduates) 1,000 2500 1,500

Solution

One graduate for 4 consumption goods (375-250 = 125 graduates for 1000-500 = 500 consumption goods 500/125 = 4)