Question
In one hour, Angel can bake 20 scones or wash 2 cars, while Amina can bake 10 scones or wash 2 cars. Use this information
In one hour, Angel can bake 20 scones or wash 2 cars, while Amina can bake 10 scones or wash 2 cars. Use this information to answer the following five questions.
Angel and Amina's opportunity costs for washing a car are:
- 20 scones/car washed for Angel and 10 scones/car washed for Amina
- 30 minutes/car washed for both Angel and Amina
- 10 scones/car washed for Angel and 5 scones/car washed for Amina
- 1/10 scones/car washed for Angel and 1/5 scones/car washed for Amina
Angel and Amina's opportunity costs for baking a scone are:
- 1/20 cars washed/scone for Angel and 1/10 cars washed/scone for Amina
- 3 minutes/scone for Angel, 6 minutes/scone for Amina
- 10 cars washed/scone for Angel, 5 cars washed/scone for Amina
- 1/10 cars washed/scone for Angel, 1/5 cars washed/scone for Amina
Who has the absolute advantage in car washing, and who has the absolute advantage in scone baking?
- Angel in baking; Amina in washing
- Amina in baking; Angel in washing
- Angel in baking; neither in washing
- Amina in washing; neither in baking
Who has the comparative advantage in car washing, and who has the comparative advantage in scone baking?
- Angel in baking; Amina in washing
- Amina in baking; Angel in washing
- Angel in baking; neither in washing
- Amina in washing; neither in baking
Angel and Amina are looking for a mutually beneficial way to trade, based on their comparative advantage. According to this trade arrangement:
- Angel will wash more cars and Amina will bake more scones.
- Angel will bake more scones and Amina will wash more cars.
- Angel and Amina will both wash more cars.
- Angel and Amina will both bake more scones.
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