Jan,a lawyer,can type faster than Jill,her secretary.Jill,on the other hand,does not have the ability or skills to practice law.Applying the principles of international trade to this situation,an economic consultant advises Jan to:

Question

Quizplus · Accepted Answer

The principle of comparative advantage states that individuals or countries should specialize in producing goods or services in which they have the lowest opportunity cost, and trade with others who have a higher opportunity cost. In this case, Jan has a comparative advantage in practicing law as she is more skilled at it, while Jill has a comparative advantage in typing as she can do it more efficiently. Therefore, it is best for Jan to specialize in practicing law and leave the typing to Jill, allowing both to maximize their productivity and efficiency. Option B allows for specialization and trade, which is the most efficient use of their skills and time.

Jan,a Lawyer,can Type Faster Than Jill,her Secretary