The Figures Below Depict the Production Possibilities Frontiers (PPFs) for Two

question 87

Multiple Choice

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the next two questions.

-Suppose that,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.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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