achieve

A manager of an advertising company was just assigned a new project to create a website and produce a video presentation. She must assign these tasks to her team. Alexa can write the content in four hours and edit the video presentation in three hours. Hoshi can write the content in three hours and edit the video presentation in one hour. Who should write the content, and why? Alexa, because she has the lowest opportunity cost, at 3/4 of a video presentation. Hoshi, because he has the lowest opportunity cost, at 1/3 of a video presentation. Hoshi, because he has an absolute advantage in content writing. Alexa, because she has a comparative advantage in content writing

Alexa, because she has a comparative advantage in content writing

Candis and Freddie want to find out who has a comparative advantage in washing the car. Candis spends two hours washing the car and four hours cleaning the house. Freddie spends three hours washing the car and one hour cleaning the house. Who has the comparative advantage in cleaning the house and what is their opportunity cost? Candis; 4 Freddie; 3 Candis; 2 Freddie; 1/3

Freddie; 1/3

Whitney and Houston want to find out who has a comparative advantage in cleaning the house. Whitney spends two hours washing the car and two hours cleaning the house. Houston spends one hour washing the car and three hours cleaning the house. Who has the comparative advantage of cleaning the house and what is the opportunity cost of cleaning the house? Houston; 1/3 Whitney; 1 Whitney; 1/3 Whitney; 3

Whitney; 1

International trade allows people around the world to focus on what they are best at and rely on others for the other stuff. This means that international trade is driven by _____, allowing people to get stuff at the lowest opportunity cost. gains from trade comparative advantage absolute advantage internal markets

comparative advantage

After Christmas, you and your friend talked about the gifts that you received. Your friend happens to have the stuff you love and you also have stuff he pines for. So, both of you trade stuff and feel better off for getting something each of you prefers to have. What do we call the benefits that you get from reallocating stuff to better uses? cost-benefit principle comparative advantage absolute advantage gains from trade

gains from trade

If you use comparative advantage to assign tasks, you can produce _____. Each task should be assigned to the person with the _____ opportunity cost. (ch6) less; highest more; lowest less; lowest more; highest

more; lowest