Answered step by step
Verified Expert Solution
Question
1 Approved Answer
_l Opportunity Cost, Comparative Advantage and Absolute Advantage Practice Questions 1. You are given the following information about a newlywed couple and the time it
_l Opportunity Cost, Comparative Advantage and Absolute Advantage Practice Questions 1. You are given the following information about a newlywed couple and the time it takes each ofthem to do different chores: vacuuming a room or washing a load of dishes: Vacuumroom mm {a} Who has an absolute advantage in vacuuming? {b} Who has an absolute advantage in washing dishes? {c} Who has a comparative advantage in vacuuming a room? Show your work and explain your answer. {d} Who has a comparative advantage in washing dishes? Who your work and explain your answer. {e} Who should do which chore and why? 2. You are given the following information about two workers and the time it takes them to clean an office and a jail cell: m mm m_ Cleaning jail cell {a} Who has an absolute advantage cleaning ofces? {b} Who has an absolute advantage cleaning jail cells? {c} Who has a comparative advantage in cleaning offices? Show your work and explain your answer? {d} Who has a comparative advantage in cleaningjail cells? Show your work and explain your answer? {e} Who should do which chore and why? 3. Consider the following two countries Assume they produce only these two goods. cars __ Com uters __ Who has an absolute advantage in cars? Who has an absolute advantage in computers? Who has a comparative advantage in cars? Show your work and explain your answer Who has a comparative advantage in computers? Show your work and explain your answer. Which country should produce which good and why? What would be the benet of specialization? rhrbllpo'n
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started