Microeconomics For Today Unit 2 PRACTICE: Investigate Absolute and Comparative Advantage

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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


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