Suppose a second individual has the following trade-offs between income and grades:

a. Define comparative advantage.

b. Does either individual (the one in exercise 4 or the one in exercise 5) have a comparative advantage in both activities?

c. Who should specialize in studying and who should specialize in working?

Data from in exercise 4

The following numbers measure the trade-off between grades and income:

• Calculate the opportunity cost of an increase in the number of hours spent studying in order to earn a 3.0 grade point average (GPA) rather than a 2.0 GPA. (Assume linear relationships.)

• Is the opportunity cost the same for a move from a 0.0 GPA to a 1.0 GPA as it is for a move from a 1.0 GPA to a 2.0 GPA?

• What is the opportunity cost of an increase in income from \($100\) to \($150\)?

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Total Hours Hours Hours Studying GPA Working Income 60 50 4.0 10 $ 60 8888 60 40 3.0 20 $120 60 20 2.0 40 $240 60 10 1.0 50 $300 60 0 0.0 60 $360