Suppose You Can Type a Paper in Two Hours or Mow

question 226

Multiple Choice

Suppose you can type a paper in two hours or mow the lawn in four hours. It takes your friend Ann eight hours to type a paper of the same length and five hours to mow the same size of lawn. Which of the following is true?

• A) Ann is the high-opportunity cost producer of both typing and mowing.
• B) Since you can type papers and mow lawns faster than Ann, you and Ann cannot benefit from specialization and trade.
• C) You and Ann could expand output and gain from trade if she specialized in mowing lawns and you specialized in typing papers.
• D) You and Ann could expand output and gain from trade if she specialized in typing papers and you specialized in mowing lawns.

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Definitions:

Credibility

The quality of being trusted and believed in, often resulting from a history of accuracy, reliability, and integrity.

Unethical

Actions or behaviors that go against moral principles or professional standards.

Process Consultants

Experts who advise organizations on how to improve the efficiency and effectiveness of their operational processes.

Word of Mouth

The informal transmission of information, ideas, or opinions from one person or group to another, typically through verbal communication.