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.

Differentiate between elastic, unit-elastic, and inelastic demand.

Analyze factors that influence the elasticity of demand for goods and services.

Calculate and interpret the cross elasticity of demand.

Calculate and interpret the income elasticity of demand.

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Definitions:

New Situations

Circumstances or environments that are unfamiliar and require individuals to adapt or learn new responses.

Classical Conditioning

A conditioning method where a response initially triggered by one stimulus comes to be triggered by another, previously neutral stimulus, after the two stimuli have been presented together multiple times.

Presented Stimulus

Any object or event that is perceived by the senses and can affect behavior.

Colic

A condition seen in infants, characterized by excessive, unexplained crying for more than three hours a day, more than three days a week, for three weeks or longer.