E202Exam1.2

E202Exam1.2 - determine who has a comparative advantage. Be...

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Chapter 2 3. (16 pts) Nancy and Bill are auto mechanics. Nancy takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. Bill takes 6 hours to replace a clutch and 2 hours to replace a set of brakes. Determine whether anyone has an absolute advantage at either task and, for each task,
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Unformatted text preview: determine who has a comparative advantage. Be sure to explain your reasoning. 4. (4 pts) Why is the production possibilities curve (PPC) for a large, multi-person economy typically bow-shaped (curved outward)?...
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