Suppose there are only two goods produced in an economy: phones and meals. Maria is adept at assembling electronics but has poor skills at preparing food. Mike is an accomplished chef but is not very skilled at assembling electronics. Currently Mike and Maria each work independently, and they each produce both meals and phones. However, they are considering trading some of their respective output with each other, but only if that would allow each person to become more prosperous. Which statement is not true? a. Customers will gain if Mike and Maria decide to specialize in what they do best and trade their output. b. Mike and Maria will both gain only if they trade the same number of phones for the same number of meals. c. Mike and Maria would gain by using their time making only the one good that they are best at producing. d. Mike should produce more food and fewer phones, and Maria should produce more phones and fewer meals.
Suppose there are only two goods produced in an economy: phones and meals. Maria is adept at assembling electronics but has poor skills at preparing food. Mike is an accomplished chef but is not very skilled at assembling electronics. Currently Mike and Maria each work independently, and they each produce both meals and phones. However, they are considering trading some of their respective output with each other, but only if that would allow each person to become more prosperous. Which statement is not true? a. Customers will gain if Mike and Maria decide to specialize in what they do best and trade their output. b. Mike and Maria will both gain only if they trade the same number of phones for the same number of meals. c. Mike and Maria would gain by using their time making only the one good that they are best at producing. d. Mike should produce more food and fewer phones, and Maria should produce more phones and fewer meals.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 13SQ
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Suppose there are only two goods produced in an economy: phones and meals. Maria is adept at assembling electronics but has poor skills at preparing food. Mike is an accomplished chef but is not very skilled at assembling electronics.
Currently Mike and Maria each work independently, and they each produce both meals and phones. However, they are considering trading some of their respective output with each other, but only if that would allow each person to become more prosperous.
Which statement is not true?
a. Customers will gain if Mike and Maria decide to specialize in what they do best and trade their output.
b. Mike and Maria will both gain only if they trade the same number of phones for the same number of meals.
c. Mike and Maria would gain by using their time making only the one good that they are best at producing.
d. Mike should produce more food and fewer phones, and Maria should produce more phones and fewer meals.
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