Answered: absolute advantage

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Olivia and Yixing are volunteering at a cat rescue shelter. The shelter supervisor asks them to clean out kennels and haul bags of cat food from the donation area into storage. It takes Olivia 6 minutes to clean out a kennel and 6 minutes to move a bag of food. It takes Yixing 10 minutes to clean out a kennel and 12 minutes to move a bag of food. For the following questions, round each answer to the nearest tenth.

a. ( Yixing, Olivia _______has an absolute advantage in completing both tasks.

b. Olivia’s opportunity cost of cleaning a kennel:

_____ bags of food moved.

c. Olivia’s opportunity cost of moving one bag of food:

______kennels cleaned.

d. Yixing’s opportunity cost of cleaning a kennel:

______bags of food moved.

e. Yixing’s opportunity cost of moving one bag of food:

______kennels cleaned.

f. Yixing says it does not matter which task each of them performs, because Olivia is faster at both tasks. Is she correct?

No, Yixing should clean out the kennels, and Olivia should move the food bags.

No, Olivia should clean out the kennels, and Yixing should move the food bags.

Yes, Olivia should do both tasks because she is faster at both.

No, Yixing should do both tasks so that she can practice and become more efficient.

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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