Essentials of Economics (MindTap Course List)
7th Edition
ISBN: 9781285165950
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 3, Problem 2QCMC
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Jared takes 10 minutes to wash dishes and 20 minutes to write a paper. Jason takes 10 minutes to wash dishes and 30 minutes to write a paper. Which
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Jared has a comparative advantage in writing a paper.
O Jared has absolute advantage in writing the paper.
Jared has a comparative advantage in washing dishes.
O Jared has absolute advantage in washing the dishes.
In an hour, Mateo can wash 2 cars or mow 1 lawn,and Sophia can wash 3 cars or mow 1 lawn. Whohas the absolute advantage in car washing, and whohas the absolute advantage in lawn mowing?a. Mateo in washing, Sophia in mowingb. Sophia in washing, Mateo in mowingc. Mateo in washing, neither in mowingd. Sophia in washing, neither in mowing
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- In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?arrow_forwardlee and Tre produce two goods in an 8-hour day. lee can produce 10 capital or 55 consumables and Tre can produce 75 capital and 60 consumables. Who has the absolute advantage I the production of consumables? Who has the absolute advantage in the production of capital? Who has a comparative advantage in the production of capital? Who has a comparative advantage in the production of consumables? What is the opportunity cost for capital?arrow_forwardTina can allocate her 8-hour day between baking and cooking. Each hour devoted to baking yields 2 cakes whereas each hour spent cooking produces 4 plates of food. Tina's neighbor, Ingrid, can produce 3 cakes or 4 plates of food per hour. Who has the absolute advantage in the production of cakes? Who has absolute advantage in the production of food? Who has a comparative advantage in the production of cakes? Who has a comparative advantage in the production of food? What is the opportunity cost for food?arrow_forward
- Paul's PPF Sue's PPF Cheese Cheese 100 60 40 30 20 80 Ham 36 90 Ham The graph above shows that Paul has a comparative advantage in the production of [Select] Y and Sue has a comparative advantage in the production of [Select] cheese both goods neither good ham Paul's PPF Sue's PPF Cheese Cheese 100 60 40 30 20 80 Ham 36 90 Ham Based on the graph above, which of the following statements is true? O Paul can only benefit from trading with Sue if a tax is imposed on the goods produced by Sue. O Since Paul is so uncompetitive compared with Sue, he will be better off by not trading at all with Sue. O Even though Sue is more productive than Paul in making cither of the two goods, Paul and Sue can both still benent from trading with each other. O Since Sue is more competitive than Paul in both goods, she has nothing to gain by trading with Paul.arrow_forward6. Given that Nathan has 10 acres and can grow 15 bales of hay or 40 bushels of corn on anacre, while Simon has 10 acres and can grow 20 bales of hay or 35 bushels of corn per acre a. What is the maximum amount of corn and hay that they can jointly produce?b. Does Nathan have a comparative advantage in growing hay?c. Does Simon have an absolute advantage in growing hay?d. What is the opportunity cost to Nathan of one bale of hay?arrow_forwardArthur can milk 10 goats per hour or shear 4 sheep per hour. Ben can milk 6 goats per hour or shear 3 sheep per hour. Who has the absolute advantage at milking goats? Who has the absolute advantage at shearing sheep? What are the opportunity costs of milking a goat for Arthur and Ben? What are the opportunity costs of shearing a sheep for Arthur and Ben? Based on comparative advantage, who should milk goats and how should shear sheep?arrow_forward
- Consider two individuals, Fred and Barney. In one hour, Fred can produceeither 15 gallons of beer, or 3 gallons of wine. In one hour, Barney can produce2 gallons of beer or 4 gallons of wine. Assume both goods can be produced incontinuous quantities. Explain who has the comparative advantage in producing each good. Specific calculations of opportunity cost should be part of your explanation. Use this information to help draw the PPF for the entire economy for one hour if Fred and Barney work together with wine on the horizontal axis. Be sure to put specific numbers on each intercept. Give specific values for the MRT at each point and identify any point where the MRT changes.arrow_forwardGiven Ted can wax 4 cars per day or wash 2 cars per day and Tom can wax 3 cars per day or wash 1 car per day. What is each man’s opportunity cost of waxing a car? Who has an absolute advantage of waxing cars? Who has a comparative advantage of waxing cars?arrow_forwardAlice can collect 10 coconuts or catch 1 fish per hour. Hs friend Emma can gather 30 coconuts or catch 2 fish per hour. What is alice opportunity cost of catching 1 fish? What is Emma's? Who has an absolute advantage in catching fish? Who has a comparative advantage in catching fish?arrow_forward
- The following table shows the amount of days to produce one unit of beans or one unit of planes. Use the information to match the person with the advantages that follow. Вeans Planes Alpha 50 9 Beta 5 7 Has the absolute advantage in planes Has the absolute advantage in beans 1. Alpha Has the comparative advantage in planes 2. Beta Has the comparative advantage in beans > > >arrow_forwardREAD THOROUGHLY! Molly is Person A; John is person B 2 people from the same house do two things: they give rides and deliver meals Molly can provide 4 taxi rides or 2 meal deliveries in an hour. John can provide 5 taxi rides or 4 meal deliveries in an hour. Who has the absolute advantage in the provision of taxi rides? Who has the comparative advantage in the provision of taxi rides? Absolute advantage: Person A Comparative advantage: Person A Absolute advantage: Person B Comparative advantage: Person A Absolute advantage: Person A Comparative advantage: Person B Absolute advantage: Person B Comparative advantage: Person B What is a price of taxi rides (in terms of meal deliveries) at which BOTH Molly and John will be better o" by specialization and trade?arrow_forwardLook at F where it says Liz has comparative advantage. Why is it that she has comparative advantage over mike in cleaning windows when mike has comparative advantage in picking up leaves? What’s the difference?arrow_forward
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