Table 2-16
Table 2-16 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-If the best lawyer in town is also the best at operating a word processor, then according to economic reasoning, this person should

Question

Table 2-16
  Table 2-16 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-If the best lawyer in town is also the best at operating a word processor, then according to economic reasoning, this person should

Quizplus · Accepted Answer

According to the principle of comparative advantage in economics, individuals should specialize in the activity they have a lower opportunity cost in. In this scenario, the best lawyer likely has a higher opportunity cost in operating a word processor as they could earn much more income from practicing law. Therefore, it would be more efficient for them to specialize in being a lawyer and hire someone else to operate the word processor.

Table 2-16 Table 2-16 Shows the Number of Labor Hours