Saturday, July 2, 2011

Eileen has a comparative advantage over Jan in piano tuning but not in shoe polishing

ECONOMICS

Multiple Choice

Eileen has a comparative advantage over Jan in piano tuning but not in shoe polishing. Therefore,

a. Jan must have an absolute advantage in piano tuning

b. Eileen must have an absolute advantage in shoe polishing

c. Jan must have a lower opportunity cost of shoe polishing

d. Eileen must have an absolute advantage in shoe polishing and in piano tuning

e. Eileen must have an absolute advantage in piano tuning

Click here for the SOLUTION

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