HW2_08 - ECO 108: Introduction to Economics Problem Set 2...

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Problem Set 2 (Chapter 2) Professor: Shanjun Li 1.If Leslie can produce two pairs of pants in an hour while Eva can make one pair an hour, then it must be the case that A) Leslie has a comparative advantage. B) Eva has an absolute advantage. C) Leslie has an absolute advantage. D) Eva has a comparative advantage. E) Leslie has both comparative and absolute advantage. 2.Which of the following statements is always true? A) Comparative advantage implies absolute advantage. B) Absolute advantage implies comparative advantage. C) Comparative advantage does not require absolute advantage. D) Absolute advantage requires comparative advantage. E) Comparative advantage requires absolute advantage. Use the following to answer questions 3-10: S h o e s P e r H o u r P a n t s P e r H o u r J e n n y 3 2 C r a i g 4 3 3.According to the data, Jenny has an absolute advantage in A) the production of shoes. D) both shoe and pants production. B) neither shoe nor pants production. E) pants and possibly shoe production. C) the production of pants. 4.Craig possesses an absolute advantage in A) the production of shoes. D) both shoe and pants production. B) neither shoe nor pants production. E) pants and possibly shoe production. C) the production of pants. 5. Jenny's opportunity cost of producing an extra pair of pants is A) 2/3 pair of shoes. D) 2 pairs of shoes. B) 1 pair of shoes. E) 2.5 pairs of shoes. C) 1.5 pairs of shoes. 6.Jenny's opportunity cost of producing an extra pair of shoes is
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HW2_08 - ECO 108: Introduction to Economics Problem Set 2...

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