Person 1 can allocate her 8-hour day between the production of two goods. A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 unit. Person 2, can produce 3 units of Good B or 4 units of Good A per hour. 1. Who has the comparative advantage in the production of Good B? a. Person 2 produces more than Person 1 using more resources b. Person 1 produces more than Person 2 using same resources c. Person 2 produce more than Person 1 using less resources d. Person 1 produce with lower opportunity cost
Person 1 can allocate her 8-hour day between the production of two goods. A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 unit.
Person 2, can produce 3 units of Good B or 4 units of Good A per hour.
1. Who has the
a. Person 2 produces more than Person 1 using more resources
b. Person 1 produces more than Person 2 using same resources
c. Person 2 produce more than Person 1 using less resources
d. Person 1 produce with lower
e. Neither they both produce same quantity
f. Person 1 produce more than Person 2 using more resources
g. Person 2 produce more than Person 1 using less resources
h. Person 2 produce with lower opportunity cost
2. Who has the comparative advantage in the production of Good A?
a. Person 2 produces more than Person 1 using more resources
b. Person 1 produces more than Person 2 using same resources
c. Person 2 produce more than Person 1 using less resources
d. Person 1 produce with lower opportunity cost
e. Neither they both produce same quantity
f. Person 1 produce more than Person 2 using more resources
g. Person 2 produce more than Person 1 using less resources
h. Person 2 produce with lower opportunity cost
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