Suppose You Can Type a Paper in Two Hours or Mow

question 244

Multiple Choice

Suppose you can type a paper in two hours or mow the lawn in four hours, while it takes your friend Ann eight hours to type a paper or two hours to mow the lawn. Which of the following is true?

• A) You have a comparative advantage in typing.
• B) You have a comparative advantage in mowing the lawn.
• C) You and Ann could save time if you mowed her lawn while she typed your paper.
• D) You and Ann cannot gain from specialization and trade.

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Definitions:

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price.

Uncontrollable Factors

External elements or conditions that cannot be directly managed or influenced by an organization, often affecting strategic planning and performance.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.