**Problem Using Absolute and Comparative Advantage**Amy and Bill are fixing up their house by painting walls and installing electrical outlets.- In one hour, Amy can paint 8 walls, or install 6 outlets.- In one hour, Bill can paint 5 walls, or install 5 outlets.**Questions**:a. Amy has the absolute advantage in [Click to select], while Bill has the absolute advantage in [Click to select].b. [Click to select] has the comparative advantage in painting. [Click to select] has the comparative advantage in outlets.**Explanation**:- **Absolute Advantage**: Refers to the ability of a person to produce more of a good or service than competitors using the same amount of resources. Fill in the blanks with the correct person's name based on the given data. - **Comparative Advantage**: Refers to the ability to produce a good or service at a lower opportunity cost than others. Calculate the opportunity costs for each activity for both Amy and Bill to determine who has the comparative advantage.

Name: **Problem Using Absolute and Comparative Advantage**Amy and Bill are
Uploaded: 2022-12-02T21:52:30.000Z
Channel: Bartleby
Description: **Problem Using Absolute and Comparative Advantage**Amy and Bill are fixing up their house by painting walls and installing electrical outlets.- In one hour, Amy can paint 8 walls, or install 6 outlets.- In one hour, Bill can paint 5 walls, or insta

Absolute cost advantage- This theory is given by Adam Smith. Absolute advantage takes place when…

Business

Economics

Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one hour, Amy can paint 8 walls, or install 6 outlets. In one hour, Bill can paint 5 walls, or install 5 outlets a. Amy has the absolute advantage in (Click to select) , while Bill has the absolute advantage in (Click to select) b. (Click to select) v has the comparative advantage in painting. (Click to select) has the comparative advantage in outlets.

Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one hour, Amy can paint 8 walls, or install 6 outlets. In one hour, Bill can paint 5 walls, or install 5 outlets a. Amy has the absolute advantage in (Click to select) , while Bill has the absolute advantage in (Click to select) b. (Click to select) v has the comparative advantage in painting. (Click to select) has the comparative advantage in outlets.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Acme supply is analyzing a Production Possibilities Curve that compares the production of wrenches( x-axis) to the production of pliers (Y-axis). If the slope of the PPC is 2, the opportunity cost of producing pliers in terms of wrenches is
Keep the Highest / 1 4. Shifts in production possibilities Suppose Spain produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and locomotives, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. 420 350 PPF 280 210 140 70 PPF 40 80 120 160 200 240 ALFALFA (Millions of bushels) LOCOMOTIVES (Tho us ands).
Suppose you and a friend are stranded on an island and must gather firewood and catch fish to survive. Through experience, you know that if each of you spends an entire day on either activity, the result is given in the following table: You Your Friend Fish 7 8 Firewood 6 bundles 3 bundles You and your friend decide that you should each specialize so that one person catches fish while the other gathers firewood. But who should do which task? a. What is the opportunity cost for you to gather an additional bundle of firewood? fish. The opportunity cost for you to gather an additional bundle of firewood is (Round your answer to two decimal places.) What is your friend's opportunity cost of gathering an extra bundle of firewood? Your friend's opportunity cost of gathering an extra bundle of firewood is fish. (Round your answer to two decimal places.) b. Assuming that you and your friend specialize, what allocation of tasks maximizes total output for your one day of joint effort? To…
Suppose that Patrick Mahomes can pass for 28 touchdowns per season or run for 14 touchdowns per season and Josh Allen can pass for 45 touchdowns per season or run for 15 touchdowns per season. Which of the following statements is true? Patrick Mahomes has an opportunity cost of passing TDs equal to 2 running TDs and a comparative advantage in passing TDs. Patrick Mahomes has an opportunity cost of passing TDs equal to ½ of a running TD and a comparative advantage in running TDs. Patrick Mahomes has an opportunity cost of passing TDs equal to 2 running TDs and a comparative advantage in running TDs. O Patrick Mahomes has an opportunity cost of passing TDs equal to ½ of a running TD and a comparative advantage in passing TDs.
Alice and Bob each produce haircuts and landscaping services. Alice can provide 4 haircuts in one hour. Bob can provide 2 haircuts in one hour. It takes Alice 2 hours to landscape an acre of property. It takes Bob 1 hour to landscape an acre of property. Assume Alice and Bob both work a standard 8 hour day. Which of the following must be true? (check all that apply) Alice has the absolute advantage in haircuts. Bob has the absolute advantage in landscaping. Bob has the comparative advantage in landscaping. Alice has the comparative advantage in haircuts.
Paul's PPF Sue's PPF Cheese Cheese 100 80 40 B 32 36 60 Ham 18 30 Ham In the graph above, suppose Paul is producing combination A and Sue is producing combination B when they decide to trade. You would expect Paul to specialize in producing [Select] *and Sue to specialize in producing (Select 1 so that the total production of Ham increases by Select and the total production of Cheese increases ISelect
Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. Antonio takes 6 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Isabella is of a clutch replacement. The opportunity cost of replacing a set of brakes for Antonio is of a clutch replacement. has a comparative advantage in brake replacement. has a comparative advantage in clutch replacement. has an absolute advantage in brake replacement. has an absolute advantage in clutch replacement.
Taylor and Bobby are auto mechanics. Taylor takes 12 hours to replace an engine and 4 hours to replace a set of brakes. Bobby takes 8 hours to replace an engine and 4 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.
5
Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible? a. Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats. b. Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks. c. Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks. d. Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.
Coffee and Cheese Exchange in a POW Camp. Suppose that in the British compound of a prisoner of war (POW) camp, the price of cheese is 18 cigarettes per cheese ration and the price of coffee beans is 6 cigarettes per coffee ration. In the French compound, the price of coffee beans is 18 cigarettes per ration. a. Is there an opportunity for beneficial exchange? (Enter all values below as integer values.) b. A British prisoner could exchange his cheese ration for cigarettes, then exchange the cigarettes for coffee rations in the British compound. If he travels to the French compound, he could exchange the coffee for cigarettes. When he returns to the British compound, he can exchange the cigarettes for cheese rations. In other words, his net gain from trade is cheese rations. Enter your answer in each of the answer boxes.
Carmen and Dennis live on a desolate island. They spend their days fishing or climbing trees to collect coconuts. The following table shows how much of each activity Carmen and Dennis can produce for each hour of work. They each can work up to 12 hours a day. Fish per hour Coconuts per hour Carmen 40 8 Dennis 28 7 On a piece of paper, draw Carmen's PPF with fish on the horizontal (x) axis and coconuts on the vertical (y) axis. Carment's PPF extends from Question Blank 1 of 9 to Question Blank 2 of 9. (Hint: your answer should be in the form of a point (x,y).) Question Blank 3 of 9 has an absolute advantage in the production of fish, and Question Blank 4 of 9 has an absolute advantage in the production of coconuts. Carmen's opportunity cost of producing 1 coconut is Question Blank 5 of 9 fish, while Dennis' opportunity cost of producing 1 coconut is Question Blank 6 of 9 fish. Because Carmen has a Question Blank 7 of 9 opportunity cost of producing…