If individual X has a comparative advantage in painting fences and individual Y has a comparative advantage in carpentry,we know that
A) individual X would use fewer hours to paint a fence than individual Y.
B) individual Y is a better carpenter than X.
C) we cannot tell whether specialization should occur without information on each person's absolute advantage.
D) there is a lower opportunity cost (expressed in units of carpentry) for individual X to paint than for individual Y to paint.
Correct Answer:
Verified
Q71: The opportunity cost of producing more capital
Q72: If a country increases the production of
Q73: Suppose a hectare of land yields 100
Q74: Economy A and Economy B have the
Q75: The more goods and services a society
Q77: If a country's production possibilities curve gets
Q78: A production possibilities curve that is bowed
Q79: If all resources are perfectly adaptable for
Q80: The principle of comparative advantage implies that
Q81: International trade allows the world to
A)move away
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents