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Boris and Vladimir help out with domestic chores around the home. Each has a production possibilities given by the table below and each has 10
Boris and Vladimir help out with domestic chores around the home. Each has a production possibilities given by the table below and each has 10 hours per week in their otherwise busy schedule to help with domestic chores. Rooms vacuumed (per hr) Meals cooked (per hr) Boris 4 3 Vladimir 5 3 Suppose that Boris and Vladimir do not cooperate they each spend half their time on each activity. What are the total gains from cooperation (or trade and specialization) if Boris and Vladimir spend all their time in the activities in which they have the comparative advantage? Group of answer choices The gains from trade are zero in this case. 5 extra rooms are vacuumed and 3 extra meals are prepared. 5 extra rooms are vacuumed and 0 extra meals are prepared. 0 extra rooms are vacuumed and 3 extra meals are prepared. None of the above.Ceteris paribus is used in economics: Group of answer choices To help highlight the impact of the change in one economic variable on another economic variable Because in the real world only one variable changes at a time Because more than one variable changing at a time is extremely rare All of the
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