Table 2.11 Table 2.11 shows the output per day of two gardeners, George and Jack.They can either devote their time to mowing lawns or cultivating gardens.
-Refer to Table 2.11.Which of the following statements is true?
A)Jack has a comparative advantage in both tasks.
B)George has a comparative advantage in both tasks.
C)Jack has a comparative advantage in lawn mowing and George in garden cultivating.
D)Jack has a comparative advantage in garden cultivating and George in lawn mowing.

Question

Table 2.11  Table 2.11 shows the output per day of two gardeners, George and Jack.They can either devote their time to mowing lawns or cultivating gardens.
-Refer to Table 2.11.Which of the following statements is true?
A)Jack has a comparative advantage in both tasks. 
B)George has a comparative advantage in both tasks. 
C)Jack has a comparative advantage in lawn mowing and George in garden cultivating. 
D)Jack has a comparative advantage in garden cultivating and George in lawn mowing.

Quizplus · Accepted Answer

To determine comparative advantage, we need to look at the opportunity cost of producing one good in terms of the other. For George, the opportunity cost of producing one unit of lawn mowing is 2 units of garden cultivating. For Jack, the opportunity cost of producing one unit of garden cultivating is 1/10 unit of lawn mowing. Therefore, Jack has a comparative advantage in garden cultivating and George has a comparative advantage in lawn mowing.

Table 211 Table 2