Assignment 3

Ted can wax a car in 20 minutes or wash a car in 60 minutes. Tom can wax a car in 15 minutes or wash a car in 30 minutes. Ted's opportunity cost of washing one car is _____ wax jobs. Tom's opportunity cost of washing one car is ______ wax jobs. Who has a comparative advantage in washing cars?

3; 2; Tom

The United States generally has a comparative advantage in the development of technology because it has

A disproportionate share of the worlds best research universities

Points that lie beneath the production possibilities curve are

Attainable but inefficient

In general, individuals and nations should specialize in producing those goods for which they have a(n):

Comparative advantage

Suppose Cathey and Louis work in a bakery making pies and cakes. Suppose it takes Cathey 1.5 hours to make a cakSuppose Cathey and Louis work in a bakery making pies and cakes. Suppose it takes Cathey 1.5 hours to make a pie and one hour to make a cake; it's supposed text Luis two hours to make a pie and 1.5 hours to make a cake which of the following statements is correct?

Lewis should specialize in pies, and Cathy should specialize in cakes

A graph that illustrates the maximum amount of one good that can be produced for every possible level of production of the other good is called a

Production possibilities curve

The downward slope of the production possibilities curve illustrates the

Scarcity Principle