Author Question: Mike can wash a car in 5 minutes and wax a car in 15 minutes. Tony can wash a car in 10 minutes and ... (Read 64 times)

tichca · **on:** Jun 30, 2018

Mike can wash a car in 5 minutes and wax a car in 15 minutes. Tony can wash a car in 10 minutes and wax a car in 20 minutes. Which of the following is true?
a. Mike can wash a car faster and has comparative advantage in washing cars.
b. Mike can wax a car faster and has comparative advantage in waxing cars.
c. Tony can wash a car faster and has comparative advantage in washing cars.
d. Tony can wax a car faster and has comparative advantage in waxing cars.

Question 2

If productivity of an economy increases then:
a. the amount of goods and services produced by a worker per hour increases.
b. the labor force increases.
c. the real GDP per capita decreases.
d. the labor force decreases.