Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
-Refer to Figure 3-5. What should Fred and Ginger produce?
A) Fred should produce tap shoes, and Ginger should produce ballet slippers.
B) Fred should produce tap shoes and ballet slippers, and Ginger should produce ballet slippers.
C) Fred should produce tap shoes, and Ginger should produce ballet slippers and tap shoes.
D) Fred should produce ballet slippers, and Ginger should produce tap shoes.

Question

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour. 
-Refer to Figure 3-5. What should Fred and Ginger produce?
A) Fred should produce tap shoes, and Ginger should produce ballet slippers. 
B) Fred should produce tap shoes and ballet slippers, and Ginger should produce ballet slippers. 
C) Fred should produce tap shoes, and Ginger should produce ballet slippers and tap shoes. 
D) Fred should produce ballet slippers, and Ginger should produce tap shoes.

Quizplus · Accepted Answer

Fred and Ginger should specialize in producing the goods for which they have a comparative advantage. Without specific data from Figure 3-5, the general principle of comparative advantage suggests that each should produce the item they can produce at a lower opportunity cost compared to the other.

Figure 3-5 These Graphs Illustrate the Production Possibilities Available for Dancing Shoes