a) Who has an absolute advantage in pulling weeds?
b) Who has an absolute advantage in cleaning the house?
c) Who has a comparative advantage in pulling weeds?
d) Who has a comparative advantage in the house?
e) Draw their joint production possibility frontier, with # of weeds pulled on the vertical axis (y-axis)
and meters of the house cleaned on the horizontal axis.
f) If they choose to pull 1000 weeds and spend the rest of their efforts washing floors, will either
Does Jaimie or Ashley specialize?
i) If yes, on which activity?
ii) Draw an indifference curve to represent this choice. Hint. For this point and the next, you
need to figure out how many hours each will spend on each activity.
iii) How many meters of the house will be cleaned if they pull 1000 weeds?
g) Ashley and Jaimie have a helpful neighbour who hates weeds. This neighbour will pull 300 weeds
per day. The neighbour will not help inside the house.
f) Draw a ppf for Ashley and Jaimie including the free help from the neighbour.
i) How is this neighbour’s help likely to affect the number of weeds pulled by Ashley and Jaimie
(will they likely choose to have more or less than 1000 weeds pulled)?
ii) Are Ashley and Jaimie likely to change the meters of the house cleaned this weekend?
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