Give an example not from the textbook involving by Dr. Robert Murphy

Question 32 / 96: Give an example—not from the textbook—involving two people and two lines of production, where one party has the absolute advantage in both lines, but it still obviously makes sense for each to focus on his or her comparative advantage.

Answer:

The pattern here will be finding something "obvious" where one person is better at both things.

The student doesn't need to be mathematical in the sense of listing numbers, but ideally the student will understand that absolute advantage does involve numbers.

For example, a heart surgeon can probably deliver more newspapers per day than the neighborhood kid, and can successfully operate more times per day, but it makes sense for the kid to deliver all the newspapers so that the heart surgeon can focus on where he or she is really good.

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Questions & Answers

what is decentralised

mithlesh Reply

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.

Widad Reply

can you send the book attached ?

Ariel

What is economics

Widad Reply

the study of how humans make choices under conditions of scarcity

AI-Robot

U(x,y) = (x×y)1/2 find mu of x for y

Desalegn Reply

U(x,y) = (xÃy)1/2 find mu of x for y

Desalegn

what is ecnomics

Jan Reply

this is the study of how the society manages it's scarce resources

Belonwu

what is macroeconomic

John Reply

macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.

husaini

etc

husaini

difference between firm and industry

husaini Reply

what's the difference between a firm and an industry

Abdul

firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅

Abdulraufu

Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?

Toofiq Reply

explain standard reason why economic is a science

innocent Reply

factors influencing supply

Petrus Reply

what is economic.

Milan Reply

scares means__________________ends resources. unlimited

Jan

economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses

Jan

calculate the profit maximizing for demand and supply

Zarshad Reply

Why qualify 28 supplies

Milan

what are explicit costs

Nomsa Reply

out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials

AI-Robot

concepts of supply in microeconomics

David Reply

economic overview notes

Amahle Reply

Test Home Page

https://www.jobilize.com/capitalism-the-market-economy-by-dr-robert-murphy-mises

Capitalism: The Market Economy

Access: Public Peer Review

Dr.Robert MurphyAssociated Scholar

Mises Institute

USA

Attribution: Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY

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