On a Particular Saturday,Mark Zuckerberg and Bill Gates Can Either

question 168

Multiple Choice

On a particular Saturday,Mark Zuckerberg and Bill Gates can either plant trees or spread mulch in their gardens.Their maximum output per day is listed in the following table,along with spaces where you can calculate the opportunity cost.

-Based on this scenario,who has an absolute advantage in spreading mulch?

• A) Zuckerberg has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
• B) Gates has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
• C) Zuckerberg has the advantage because he gives up more trees each time he spreads 1 cubic yard of mulch.
• D) Neither has an absolute advantage in spreading mulch.
• E) Both parties have an absolute advantage in planting trees.

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Definitions:

Human Resources

The abilities, skills, and health of human beings that contribute to the production of both current and future output. Investment in training and education can increase the supply of human resources.

Physical Resources

Tangible assets used in the production or delivery of goods and services, such as machinery, buildings, and raw materials.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Opportunity Cost

Renouncing the possibility of gains from different alternatives by making a single choice.