John and Jane Smith are both economists who are deciding how to split household chores of cooking and cleaning. They discover that John has a comparative advantage in cooking. Does this discovery tell them anything about comparative advantage in cleaning?
A. No, either one may have a comparative advantage in cleaning.
B. Yes, John must also have a comparative advantage in cleaning.
C. Yes, Jane must have a comparative advantage in cleaning.
D. No, both or neither may have a comparative advantage in cleaning.
Answer: C
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Which of the following actions would increase the consumption spending component of the gross domestic product (GDP)?
a. Ann cooking dinner for Tim instead of going out b. Ann and Tim buying a used microwave oven c. Ann and Tim buying vegetables to prepare soup at home d. Tim buying Ann a dress e. Tim and Ann painting the garage themselves
Figure 4-13
The drug BGH (bovine growth hormone) dramatically increases the milk output of dairy cows. Farmers in Wisconsin, a big dairy state, vigorously oppose licensing the drug, fearing that excess supply and a consumer reaction on the purity of food issue will put many of them out of business. Which graph in Figure 4-13 best illustrates the farmers' fears?
a.
1
b.
2
c.
3
d.
4
Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?
A. Huge current account deficit B. Currency pegged to the dollar C. Floating rate policy D. Adherence to the old gold standard
A bond is
A. a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. B. the share of profits distributed to bondholders. C. a promise to pay for the use of someone else's money. D. a promise of ownership of the government. E. c and d