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Tom and Jerry Have Two Tasks to Do All Day

Question 76

Multiple Choice

Tom and Jerry have two tasks to do all day: make dishes and build fences.If Tom spends all day making dishes,he will have make 16 dishes.If he instead devotes his day to building fences,Tom will build 4 fences.If Jerry spends his day making dishes,he will make 14 dishes; if he spends the day building fences,he will build 7 fences.Because Tom has a ____________ opportunity cost for one fence compared to Jerry,we know Tom has _________________________.


A) higher; the comparative advantage in fence production
B) lower; the comparative advantage in fence production
C) similar; no advantage in production of either good
D) higher; the comparative advantage in dish production

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