Suppose Country A can produce 60 units of wool or 60 units of steel with one unit of resources. Country B can produce 40 units of wool or 20 units of steel with one unit of resources. 1. The opportunity cost of wool in country A will be: Suppose Country A can produce 60 units of wool or 60 units of steel with one unit of resources. Country B can produce 40 units of wool or 20 units of steel with one unit of resources. 2. The opportunity cost of wool in country A will be: 3. The opportunity cost of wool in country B will be: 4. The opportunity cost of steel in country A will be: 5. The opportunity cost of steel in country B will be:

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Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.