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:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.

Contingency Tables

Statistical tables used to display and analyze the relationship between two or more categorical variables.

Generalizations

Statements or conclusions that are made based on specific cases or evidence but are applied more broadly to larger groups or situations.

Categorical Data

Data that fit into distinct categories such as zip code or academic major.