Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. How much of each good can be produced if each worker fully specializes according to comparative advantage?
A. 1,600 fish and 8,000 pounds of berries
B. 1,600 fish and 4,800 pounds of berries
C. 3,600 fish and 12,800 pounds of berries
D. 2,000 fish and 8,000 pounds of berries
Answer: A
You might also like to view...
Use the following diagram to answer the next question.
Which of the following statements about this market is correct?
A. Employers would benefit from a higher wage since they could profitably attract more workers. B. At a wage rate less than $5, more than 500 workers would be employed. C. At a wage rate of $5, the number of workers employed is maximized. D. At a wage rate greater than $5, more than 500 workers would be employed.
A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it
a. True b. False Indicate whether the statement is true or false
The increase in the unemployment rate during a recession is associated with which type of unemployment?
A. Structural unemployment B. Cyclical unemployment C. Nominal unemployment D. Frictional unemployment
Attractive landscaping increases the property values of surrounding homes, creating a marginal benefit. The figure above represents the market for monthly landscaping contracts
a) What is the marginal social benefit of the 40th contract? Of the 60th contract? b) What is the marginal private benefit of the 40th contract? c) What is the marginal external benefit of the 40th contract? d) What is the unregulated competitive equilibrium price and quantity? e) What is the efficient quantity? f) What is the amount of the deadweight loss?