Janis Mows the Lawn in 1 Hour and Types a Paper

question 1

Multiple Choice

Janis mows the lawn in 1 hour and types a paper in 1 hour.Kristen mows the lawn in 2 hours and types a paper in 1 hour.Which of the following statements is true?

• A)Kristen has an absolute advantage in typing and a comparative advantage in mowing.
• B)Janis has an absolute advantage in both activities and a comparative advantage in typing.
• C)Janis has an absolute advantage in both activities and a comparative advantage in mowing.
• D)The opportunity cost of mowing the lawn is greater for Kristen than it is for Janis.
• E)Neither Janis nor Kristen would gain from specialization.

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Definitions:

Treble Damages

A form of punitive damages awarded in a legal case that are three times the amount of actual compensatory damages.

Civil Actions

Legal proceedings initiated by individuals or entities (aside from the state) to seek relief or damages from another party.

Sherman Act

A foundational antitrust law in the United States aimed at promoting competition and restricting monopolistic practices.

Price Fixing

An illegal agreement among competitors to control prices, usually aimed at increasing prices or reducing competition in the market.