England has a relatively cool and cloudy climate that is ill suited for grape growing. It can produce 200 units of wine for every 400 units of cloth. Portugal, in contrast, has a relatively warm and sunny climate that is good for growing grapes. It can produce 200 units of wine for every 100 units of cloth. Which country has the higher opportunity cost of producing cloth?
A. England: 1/2 unit of cloth for every unit of wine
B. Portugal: 2 units of wine for every unit of cloth
C. Portugal: 1/2 unit of wine for every unit of cloth
D. England: 2 units of wine for every unit of cloth
Answer: B
Economics
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