Shubham M Verma

ECON -2020

Professor Svetlana Smirnov

Date -09/19/2017

Word Count-

Homework -1 Opportunity costs

2) B- George has an absolute advantage in both tasks.

4
3) Opportunity cost of mowing a lawn for Jack = = 0.6666 gardens.
6

6
4) Opportunity cost of cultivating a garden for Jack = lawns = 1.5 lawns.
4

5
5) George's opportunity cost of mowing a lawn = = 0.5 garden.
10

10
6) George's opportunity cost of cultivating a garden = = 2 lawns.
5

7) C) Jack has a comparative advantage in lawn mowing and George in garden cultivating.

10 0
11) Opportunity cost of producing 1 ton of coconuts in Costa Rica = = 0.6666
150

pineapples.

90
12) Opportunity cost of producing 1 ton of coconuts in Guatemala = = 0.5 pineapples.
180

150 3
13) Opportunity cost of producing 1 ton of pineapples in Costa Rica = = = 1.5
100 2

coconuts.
 18 0
14) Opportunity cost of producing 1 ton of pineapples in Guatemala = = 2 coconuts.
90

15) A) Guatemala.

16) C) Costa Rica.

17) B) Neither country