- Referring to Table 1, what can be concluded about Spain’s absolute and comparative advantage for both boats and trucks?
- Referring to Table 2:
. Who has absolute advantage in what good?
. Italy has comparative advantage in what good?
. Greece has comparative advantage in what good?
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Essay question: As a student, you are currently, paying $5,000 in tuition annually. You work and decide you want to devote more time to your studies to increase your grade point average (GPA); therefore, you give up your job earning $25,000 annually. You expect that when you graduate you will earn $40,000 annually. It takes you one year to complete your studies.
- Explain the concept of opportunity cost.
- Is it beneficial to quit your job? Why, or why not?
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