John and Jane Smith are both economists who are deciding how to split household chores of cooking and cleaning. They discover that John has a comparative advantage in cooking. Does this discovery tell them anything about comparative advantage in cleaning?
A. No, either one may have a comparative advantage in cleaning.
B. Yes, John must also have a comparative advantage in cleaning.
C. Yes, Jane must have a comparative advantage in cleaning.
D. No, both or neither may have a comparative advantage in cleaning.
Answer: C
You might also like to view...
Internal costs are
A) costs borne solely by the individuals who incur them. B) costs borne by people in the same society as those who incur them. C) costs borne by people working in the firm that incurs them. D) costs that are incurred by the producers but buyers do not pay for them.
Refer to the data. If the price in this market was $4:
Answer the question on the basis of the given supply and demand data for wheat:
A. the market would clear; quantity demanded would equal quantity supplied.
B. buyers would want to purchase more wheat than is currently being supplied.
C. farmers would not be able to sell all their wheat.
D. there would be a shortage of wheat.