Sia
1963983923's Question
Macroeconomics
Posted 10 months ago
Using the same amount of time and resources, Kim can write either 10 articles or complete 5 worksheets and Leah can either write 3 articles or complete 9 worksheets.
Who has a comparative advantage in each thing?
Choose 1 answer:
(A) Nobody has a comparative advantage in either good.
(B) Kim has a comparative advantage in writing articles, Leah has a comparative advantage in worksheets.
(c) Kim has a comparative advantage in both goods.
(D) Leah has a comparative advantage in both goods.
(E) Kim has a comparative advantage in worksheets; Leah has a comparative advantage in writing articles.
Sign in to unlock the answer
Answer from Sia
Posted 10 months ago
B
Key Concept
Comparative Advantage
Explanation
Comparative advantage occurs when an individual or country can produce a good or service at a lower opportunity cost than others. Kim's opportunity cost of writing an article is 0.5 worksheets (5 worksheets/10 articles), while Leah's is 3 worksheets per article (9 worksheets/3 articles). Therefore, Kim has a comparative advantage in writing articles. Conversely, Kim's opportunity cost of completing a worksheet is 2 articles (10 articles/5 worksheets), while Leah's is 1/3 of an article (3 articles/9 worksheets). Thus, Leah has a comparative advantage in completing worksheets.
Not the question you are looking for? Ask here!
Enter question by text
Enter question by image
Unlock Smarter Learning with AskSia Super!
Join Super, our all-in-one AI solution that can greatly improve your learning efficiency.
30% higher accuracy than GPT-4o
Entire learning journey support
The most student-friendly features
Study Other Question