Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible? a. Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats. b. Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks. c. Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks. d. Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.
Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible? a. Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats. b. Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks. c. Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks. d. Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section3.2: Comparative Advantage: The Driving Force Of Specilization
Problem 2QQ
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Question
Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible?
a. |
Jim has an
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b. |
Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks.
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c. |
Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks.
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d. |
Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.
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