2. Zak and Sara each produce two goods: pianos and bricks. In one hour, Sara can produce 1 piano in an hour, or she can produce 1 brick in 6 minutes (1/10 of an hour). She has 10 hours at her disposal. Zak can produce 1 piano in 2 hours, or 1 brick in 7.5 minutes (1/8 of an hour). He has 5 hours at his disposal. a) Who has the absolute advantage in producing pianos? Who has the comparative advantage in producing bricks? Explain both your answers. 6 x 10 = 60 bricks 7.5 x 8 = 60 bricks b) Draw Zak's PPF and label a point A where he could produce and consume without trading.

2. Zak and Sara each produce two goods: pianos and bricks. In one hour, Sara can produce 1 piano in an hour, or she can produce 1 brick in 6 minutes (1/10 of an hour). She has 10 hours at her disposal. Zak can produce 1 piano in 2 hours, or 1 brick in 7.5 minutes (1/8 of an hour). He has 5 hours at his disposal. a) Who has the absolute advantage in producing pianos? Who has the comparative advantage in producing bricks? Explain both your answers. 6 x 10 = 60 bricks 7.5 x 8 = 60 bricks b) Draw Zak's PPF and label a point A where he could produce and consume without trading.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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