?Hair Pins /hourBandanas /hourNigel410Mia93Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Which of the following is true?

A. Nigel has a comparative advantage in producing hair pins but not bandanas.
B. Nigel has a comparative advantage in producing bandanas but not hair pins.
C. Nigel has a comparative advantage in producing both goods.
D. Nigel does not have a comparative advantage in producing either good.


Answer: B

Economics

You might also like to view...

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is

A. $72. B. $12. C. $36. D. $6.

Economics

If a person withdraws $500 from his/her savings account and puts it in his/her checking account, then M1 will ________ and M2 will ________

A) not change; not change B) not change; increase C) increase; not change D) not change; decrease E) increase; decrease

Economics

Adverse selection can occur when

A) all persons involved in a transaction have full information. B) one person has information not available to others. C) post-agreement incentives result in workers shirking. D) nobody has any information about a particular product.

Economics

The supply of paintings by Van Gogh is most likely to be

a. of infinite elasticity because supply is limited b. of high elasticity because supply is limited c. elastic because the paintings are luxury goods d. inelastic because supply is limited e. unit elastic

Economics