12. john wants to paint his house. In order to do so, he would have to take one day off work where he gets paid $300 a day. Alternatively, John can hire a student painting service which will take two days and cost $100 a day. If the painting service is not hired, the students will paint another smaller house for $80 a clay. john should hire the painting service instead of doing it himself because even though he has atn} in painting his house, the student painting service has atn) ( 1) opportunity cost; comparative advantage (2) comparative advantage ; absolute advantage (3) absolute advantage; opportunity cost (4) absolute advantage; comparative advantage 13. Ifwages in Canada are higher than in Mexico, then: (1) trading with Mexico will hurt Canada (2) Mexico will have a lower opportunity cost of producing all goods. (3) Mexico will have an absolute advantage in all goods. (4) trade will benet both Canada and Mexico. 14. How is absolute advantage determined? ( 1) By comparing opportunin costs (2) By calculating the dollar cost of production (3) By first determining which country has a comparative advantage (4) By comparing the productivity of one nation to that of another