EBK STUDY GUIDE FOR MANKIW'S BRIEF PRIN
7th Edition
ISBN: 8220103455329
Author: Mankiw
Publisher: CENGAGE L
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Chapter 3.2, Problem 2QQ
To determine
Crusoe’s absolute and
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Molly is Person A; John is person B
2 people from the same house do two things: they give rides and deliver meals
Molly can provide 4 taxi rides or 2 meal deliveries in an hour. John can provide 5 taxi rides or 4 meal deliveries in an hour.
Who has the absolute advantage in the provision of taxi rides? Who has the comparative advantage in the provision of taxi rides?
Absolute advantage: Person A Comparative advantage: Person A
Absolute advantage: Person B Comparative advantage: Person A
Absolute advantage: Person A Comparative advantage: Person B
Absolute advantage: Person B Comparative advantage: Person B
What is a price of taxi rides (in terms of meal deliveries) at which BOTH Molly and John will be better o" by specialization and trade?
Alice can collect 10 coconuts or catch 1 fish per hour. Hs friend Emma can gather 30 coconuts or catch 2 fish per hour. What is alice opportunity cost of catching 1 fish? What is Emma's? Who has an absolute advantage in catching fish? Who has a comparative advantage in catching fish?
Jared takes 10 minutes to wash dishes and 20 minutes to write a paper. Jason takes 10 minutes to wash dishes and 30 minutes to write a paper. Which
of the following statements is correct?
Jared has a comparative advantage in writing a paper.
O Jared has absolute advantage in writing the paper.
Jared has a comparative advantage in washing dishes.
O Jared has absolute advantage in washing the dishes.
Chapter 3 Solutions
EBK STUDY GUIDE FOR MANKIW'S BRIEF PRIN
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