Homework Assignment # 10 Chapter 15 Page 430, # 2. Bill can paint either two walls or one window frame in one
hour. In the same time, Frank can paint either three walls or two window frames. To minimize the time spent painting, who should specialize in painting walls, and who should specialize in painting window frames? To answer this question you must understand the concepts of Opportunity Costs and the definition of Comparative Advantage. This problem may seem silly and not make sense to you at first. Consider that all of us must understand what our comparative advantage is to make the most of our lives and our careers. Note: You must show your work and explain how you got your answer. What is the definition of exchange rates? How much can one US dollar be exchanged for in Canadian Currency? What causes exchange rates between various countries to change on a continuous basis? Do not just give me a word for word definition out of the book. To answer this you must understand what is explained on pages 419-420. Exhibit #8 on page 420 will help you understand how to answer this question. You really need to answer the "why" question for this problem.