passwella.
Menu

JAMB Economics 2002 Question 50

Question 50

International Trade

In the diagram above, the opportunity cost of a unit of cotton in terms of cocoa is

Diagram for this question
  1. A.4 for Ghana; 2 for Nigeria
  2. B.20 for Ghana; 60 for Nigeria
  3. C.1/4 for Ghana; 1/2 for Nigeria
  4. D.5 for Ghana; 30 for Nigeria
Show the answer and explanation

Answer: A (4 for Ghana; 2 for Nigeria)

Explanation

Use the diagram. Ghana gives up 20 cocoa for 5 cotton (20 ÷ 5 = 4 cocoa per cotton); Nigeria gives up 60 cocoa for 30 cotton (60 ÷ 30 = 2).