Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible? a.Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats. b.Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks. c.Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks. d.Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.

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Answered: Suppose Jim and Tom can both produce…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible?

	a.	Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats.
	b.	Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks.
	c.	Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks.
	d.	Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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