Question 1
6 / 6 pts
John and Paul are stranded on a deserted island where they survive by catching fish and picking coconuts

Economics

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Question 1

6 / 6 pts

John and Paul are stranded on a deserted island where they survive by catching fish and picking coconuts. In one day John can catch 5 fish OR pick 15 coconuts or he can divide his time between the two in any way with no loss of efficiency. Similarly, Paul can catch 20 fish or pick 16 coconuts in a day (and also divide time in any way between the two).

Absolute advantage in fish: Paul

Absolute advantage in coconuts: Paul

Comparative advantage in fish: Paul

Comparative advantage in coconuts: John

Answer 1:Correct!

Paul

Answer 2:Correct!

Paul

Answer 3:Correct!

Paul

Answer 4:Correct!

John

Question 2

2 / 2 pts

John and Paul are stranded on a deserted island where they survive by catching fish and picking coconuts. In one day John can catch 5 fish OR pick 15 coconuts or he can divide his time between the two in any way with no loss of efficiency. Similarly, Paul can catch 20 fish or pick 16 coconuts in a day (and also divide time in any way between the two).

The marginal cost of a fish for John is [fish_cost].

Correct!

Correct Answers

3 coconuts

3 coconut

3 Coconuts

3 Coconut

Question 3

2 / 2 pts

When price increases, increases and decreases.

Answer 1:

Correct!quantity supplied

Answer 2:

Correct!quantity demanded

Question 4

10 / 10 pts

Imagine that a new technology is invented that makes it very cheap to produce highly efficient solar panels that can be put on cars stuff. Give the effect in the following markets.

price of solar panels decrease

quantity of solar panels increase

price of oil decrease

quantity of oil decrease

price of tires increase

quantity of tires increase

Answer 1:Correct!

decrease

Answer 2:Correct!

increase

Answer 3:Correct!

decrease

Answer 4:Correct!

decrease

Answer 5:Correct!

increase

Answer 6:Correct!

increase

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