Homework Clinic
Social Science Clinic => Economics => Macroeconomics => Topic started by: daltonest1984 on Jun 30, 2018
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Archie can paint 5 backyard fences or repair 2 cars in 8 hours, while Austin can paint 4 backyard fences or repair 2 cars in 8 hours. Identify the correct statement.
a. Archie is relatively better in repairing cars.
b. Archie is relatively better in painting fences.
c. Austin is relatively better in painting fences.
d. Archie and Austin are equally good in painting fences.
e. Neither Archie not Austin are good in repairing cars.
Question 2
Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. According to comparative advantage,
a. Tom should kill more birds and fish less, then trade birds for fish.
b. Tom should kill fewer birds and fish more, then trade fish for birds.
c. Both, Tom should kill more birds and fish less.
d. Both, Tom should kill fewer birds and fish more.
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Answer to Question 1
b
Answer to Question 2
a