4. In a two-person, two-good economy, the benefits of labor specialization will be larger when A. one person has an absolute advantage in both goods. B. neither person has an absolute advantage. C. the difference in their respective opportunity costs are small for both goods. D. there is a large difference in their opportunity costs. 5. Amr and Badr comprise a two-person economy. Their hourly rates of production are shown below. Good Amr Badr Computers 10 6 Calculators 100 120
4. In a two-person, two-good economy, the benefits of labor specialization will be larger when A. one person has an absolute advantage in both goods. B. neither person has an absolute advantage. C. the difference in their respective opportunity costs are small for both goods. D. there is a large difference in their opportunity costs. 5. Amr and Badr comprise a two-person economy. Their hourly rates of production are shown below. Good Amr Badr Computers 10 6 Calculators 100 120
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![4. In a two-person, two-good economy, the benefits of labor specialization will be larger when
A. one person has an absolute advantage in both goods.
B. neither person has an absolute advantage.
C. the difference in their respective opportunity costs are small for both goods.
D. there is a large difference in their opportunity costs.
5. Amr and Badr comprise a two-person economy. Their hourly rates of production are shown
below.
Good
Amr
Badr
Computers
10
6
Calculators
100
120](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda9fe83b-2c00-48f7-9f50-b3e5c91ce1a3%2F750b73c6-df06-4392-9046-ac6818c8f052%2Ffgjl9b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. In a two-person, two-good economy, the benefits of labor specialization will be larger when
A. one person has an absolute advantage in both goods.
B. neither person has an absolute advantage.
C. the difference in their respective opportunity costs are small for both goods.
D. there is a large difference in their opportunity costs.
5. Amr and Badr comprise a two-person economy. Their hourly rates of production are shown
below.
Good
Amr
Badr
Computers
10
6
Calculators
100
120
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