Microeconomics For Today Unit 2 PRACTICE: Investigate Absolute and Comparative Advantage
What does an opportunity cost of 1.0 indicate?
An equality between a given production choice and the next-best alternative
Which worker has both an absolute and a comparative advantage in one of the tasks?
Both Carol and Than.
Which method accurately describes how opportunity cost is calculated?
By dividing the best alternative by the production choice made
Which worker has a comparative advantage in retrieving books?
Carol
Which worker has an absolute advantage in retrieving books?
Carol
Which worker has an opportunity cost of 1.0 for both reshelving and retrieving books?
Miguel
Which worker has a comparative advantage in reshelving books?
Than
Which worker has an absolute advantage in reshelving books?
Than
Which phrase correctly defines absolute advantage?
The ability to do a task using fewer resources than anyone else
Which phrase correctly defines comparative advantage?
The ability to do a task while giving up less alternative production than anyone else
