Quzi 9/24/2018 Table 2.1 Krystal Mark Writing Poems 9/z Wnting TV Commercials (1
ID: 1142120 • Letter: Q
Question
Quzi 9/24/2018 Table 2.1 Krystal Mark Writing Poems 9/z Wnting TV Commercials (1) Refer to Table 2.1. For Krystal, the opportunity cost of writing one T A) 1/4 of a poem. B) 2 poems C) 4 poems. D) 6 poems cone has a comparative advantage in producing a good if they can produce that sood A) in greater quantities B) at a lower opportunity cost. C) using more capital and less labor. D) using more labor and less capital. (3) Specialization and trade are closely linked to a. absolute advantage b. comparative advantage c. gains to some traders that exactly offset losses to other traders d. shrinkage of the economic pie. (4) Alexi and Tony own a food truck that serves only two items, street tacos and Cuban sandwiches. As shown in the table. Alexi can make 80 street tacos per hour but only 20 Cuban sandwiches. Tony is a bit faster and can make 100 street tacos or 30 Cuban sandwiches in and hour. Output per hour Street Tacos 80 100 Cuban Sandwiches 20 30 Alexi Tony For Alexi and for Tony, what is the opportunity cost of a street taco? Who has a comparative advantage in the production of street tacos? a. Assume that Alexi works 20 hours per week. Assuming Alexi is in business on his own, graph the PPF for the two production Do the same for Tony. b.Explanation / Answer
1. C. 4 Poems
Explanation: Krystal's opportunity costs of writing 2 TV commercials are writing 8 poems. So, Krystal's opportunity costs of writing 1 TV commercials are writing 8/2 =4 poems.
2. B
Explanation: When a person has a comparative advantage, this means the person can produce the good at a lower opportunity cost than the other person.
3. B
Explanation: A person who has a comparative advantage in a good should specialize in that good to maximize the benefits of trade.
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