For Questions 13 and 14, consider a society consisting of only two workers, Andy

Question

For Questions 13 and 14, consider a society consisting of only two workers, Andy and Joe, who spend their workdays producing either baseballs or jeans. The productive ability of each worker for each task is summarized in the table below baseballs Andy 20 baseballs per day 10 jeans per day Joe 5 baseballs per day Ijeans per day has an absolute advantage in the production of baseballs has an 13. absolute advantage in the production of jeans. A. Andy, Andy. B. Andy, Joe. C. Joe; Joe. D. None of the above is correct answer.

Explanation / Answer

13) ANDY, ANDY

ANDY has an absolute advantage in both the products as it can produce 20 baseballs per day and 10 jeans per day.

14) Opportunity Cost Table:

BASEBALLS JEANS

ANDY 10/20 = 0.5 20/10 =2

JOE 1/5 = 0.2 5/1 = 5

So that Andy has least opp. cost in producing Jeans and Joe has least opp. cost in producing baseballs.

Therefore, Andy has a C.A. in producing Jeans and Joe has a C.A. in producing baseballs.

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