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

Question 28

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}{ccc}\underline{\text { Good }} & \underline{\text { Smith }} & \underline{\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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