Exhibit 2-2 -Given the Information in Exhibit 2-2, Which Product Should Friday

question 192

Multiple Choice

Exhibit 2-2

-Given the information in Exhibit 2-2, which product should Friday (an individual) make?

• A)fishhooks because he can make 30 more per day than Crusoe but only 8 more fishing poles
• B)both because he is better at both
• C)fishing poles because that is where his comparative advantage lies
• D)neither because Crusoe is better at both
• E)we cannot tell from the given information

---

Definitions:

Health Care Services

A broad range of services provided to individuals or communities to promote, maintain, monitor, or restore health.

Asymmetric Information

A situation in which one party in a transaction has more or better information than the other, often leading to an imbalance in power or market failures.

Health Care

The organized provision of medical services to individuals or communities through services offered by medical professionals.

Defensive Medicine

The practice by healthcare providers of ordering tests, procedures, or visits, or avoiding certain high-risk patients or procedures, primarily to avoid litigation, rather than to benefit the patient's health.