Use the table below to answer the following questions.
Table 2.3.2
Production for one week by Sheila and Bruce
-Given the information in Table 2.3.2,can Sheila and Bruce gain by specialization?
A)Yes,but only if Bruce gets paid more than Sheila.
B)No,not under the given circumstances.
C)It depends on the wages each earns.
D)Only if they are married to each other.
E)Yes,if each specializes in the good in which they have a comparative advantage.

Question

Use the table below to answer the following questions.
Table 2.3.2
Production for one week by Sheila and Bruce 
-Given the information in Table 2.3.2,can Sheila and Bruce gain by specialization?
A)Yes,but only if Bruce gets paid more than Sheila. 
B)No,not under the given circumstances. 
C)It depends on the wages each earns. 
D)Only if they are married to each other. 
E)Yes,if each specializes in the good in which they have a comparative advantage.

Quizplus · Accepted Answer

According to the table, Sheila has a comparative advantage in producing sweaters while Bruce has a comparative advantage in producing jeans. If they specialize in producing the good in which they have a comparative advantage, they can produce more of that good than the other person in the same amount of time. This will increase their total production and possibly lead to more income. Therefore, specialization can be beneficial for them if they specialize in their respective comparative advantage goods.

Use the Table Below to Answer the Following Questions