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Smith and Jones Comprise a Two-Person Economy Refer to the Table Above

Question 9

Multiple Choice

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below.  Good  Smith  Jones  Computers 106 Calculators 100120\begin{array}{lccc}\text { Good } &\text { Smith } & \text { Jones } \\\text { Computers } & 10 & 6 \\\text { Calculators } & 100 & 120\end{array} Refer to the table above. Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, __________ devotes more time to calculators because his __________.


A) Smith; absolute advantage is larger
B) Jones; absolute advantage is smaller
C) Jones; opportunity costs are lower
D) Smith; opportunity costs are lower

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