Use the following to answer question 8: In the Island of Never Land, Wendy only bakes bread; John only picks berries, and Peter Pan only milks the cow. At the end of the day they satisfy their needs by trading among themselves. 8. Since John picks berries and trades them for bread and milk, which of the following is true A) John has an absolute advantage in picking berries B) John has a comparative advantage in picking berries C) John likes berries D) John would rather pick berries than milk the cow

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains Rrom Trade
Section: Chapter Questions
Problem 6PA
icon
Related questions
Question
Use the following to answer question 8:
In the Island of Never Land, Wendy only bakes bread; John only picks berries, and Peter Pan only milks
the cow. At the end of the day they satisfy their needs by trading among themselves.
8. Since John picks berries and trades them for bread and milk, which of the following is true
A) John has an absolute advantage in picking berries
B) John has a comparative advantage in picking berries
C) John likes berries
D) John would rather pick berries than milk the cow
Transcribed Image Text:Use the following to answer question 8: In the Island of Never Land, Wendy only bakes bread; John only picks berries, and Peter Pan only milks the cow. At the end of the day they satisfy their needs by trading among themselves. 8. Since John picks berries and trades them for bread and milk, which of the following is true A) John has an absolute advantage in picking berries B) John has a comparative advantage in picking berries C) John likes berries D) John would rather pick berries than milk the cow
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Absolute Advantage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning