Suppose That, on a Particular Saturday, Mark Zuckerberg and Bill

question 93

Multiple Choice

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.

Understand the dynamics of social norms (reciprocity and social responsibility norms) influencing altruistic behavior.

Explore the effects of face-to-face contact in reducing prejudice and hostility.

Grasp the theory behind social exchange theory as it pertains to altruism and interpersonal behavior.

Recognize the importance of conciliation and communication in conflict resolution.

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Definitions:

Exchange Rate

The price of one currency in terms of another for conversion purposes.

Yuan

The official currency of the People's Republic of China.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by GDP.

Current Account

A country's transactions with the rest of the world, covering trade in goods and services, net earnings on investments, and net transfer payments.