Saturday, July 2, 2011

Janis mows the lawn in 1 hour and types a paper in 1 hour

ECONOMICS

Multiple Choice

Janis mows the lawn in 1 hour and types a paper in 1 hour. Kristen mows the lawn in 2 hours and types a paper in 1 hour. Which of the following statements is true?

a.Kristen has an absolute advantage in typing and a comparative advantage in mowing.

b.Janis has an absolute advantage in both activities and a comparative advantage in typing.

c.Janis has an absolute advantage in both activities and a comparative advantage in mowing.

d.The opportunity cost of mowing the lawn is greater for Kristen than it is for Janis.

e.Neither Janis nor Kristen would gain from specialization.

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