Econ: Comparative Advantage
Assume that Alex can wash a car in 12 minutes and wax a car in 36 minutes. Further assume that Bill can wash a car in 8 minutes and wax a car in 16 minutes. Which of the following is true?
Alex has a comparative advantage washing cars.
Based on the table below (amounts in millions), which of the following is true?
Belgium has the absolute and comparative advantage in waffles.
Based on the table below (amounts in millions), what is the opportunity cost to each side of increasing chocolate production by one unit?
Belgium: 1/2 of a waffle Switzerland: 1/3 of a waffle
Based on the table below (amounts in 100,000s), what is the opportunity cost of producing another TV for both countries?
Canada: 2/5 of an auto U.S.: 1/3 of an auto
If one individual has the absolute advantage in one of two tasks then the other individual must have the absolute advantage in the other task.
False
Assume Jake can complete a tax form in one hour and he can update a file in 20 minutes. Assume Samantha can complete a tax form in 40 minutes and update a file in 20 minutes. Which of the following is true?
Jake has a comparative advantage in updating files.
If Lucy can make a box of chocolate in 3 minutes and squeeze a gallon of juice in 12 minutes and Ethel can make a box of chocolate in 5 minutes and squeeze a gallon of juice in 15 minutes, which of the following is true?
Lucy has the absolute advantage and comparative advantage in making chocolate.
Assume Melody can edit a video file in 20 minutes and create a web page in 10 minutes. Further assume that Brandon can edit a video file in 36 minutes and create a web page in 12 minutes. Which of the following is true?
Melody has the absolute advantage in editing videos and the comparative advantage in editing videos.
Based on the table below, which of the following is true?
Portugal has the comparative advantage in jackets and Spain has the comparative advantage in belts.
Based on the table below, which of the following is true?
Spain has the absolute advantage in both goods.
Based on the table below, what is the opportunity cost to each country of producing one more belt?
Spain: 0.4 jacketsPortugal: 0.5 jackets
Based on the table below, what is the opportunity cost to each country of producing one more jacket?
Spain: 2.5 belts Portugal: 2.0 belts
Based on the table below (amounts in 100,000s), which of the following is true?
The U.S. has the absolute and comparative advantage in TV production.
Based on the table below, which of the following is true?
Treeland has the absolute advantage in both lumber and autos.
Based on the table below, which country has the comparative advantage in the production of each good?
Treeland has the comparative advantage in autos and Carland has the comparative advantage in lumber.
Based on the table below, what is the opportunity cost to each country of producing one more unit of lumber?
Treeland: 1/2 of an auto Carland: 1/3 of an auto
Based on the table below, what is the opportunity cost to each country of producing one more auto?
Treeland: 2 units of lumber Carland: 3 units of lumber
If one individual has the comparative advantage in one of two tasks then the other individual must have the comparative advantage in the other task.
True
Assume Melody can edit a video file in 20 minutes and create a web page in 10 minutes. Further assume that Brandon can edit a video file in 36 minutes and create a web page in 12 minutes. What is Melody's opportunity cost of editing a video?
creating 2 web pages
Assume Melody can edit a video file in 20 minutes and create a web page in 10 minutes. Further assume that Brandon can edit a video file in 36 minutes and create a web page in 12 minutes. Based on this information, what is Brandon's opportunity cost of creating a web page?
editing 1/3 of a video
