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
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
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