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1、SOLUTIONSTOTEXTPROBLEMS:QuickQuizzes1.Figure1showsaproductionpossibilitiesfrontierforRobinsonCrusoebetweengatheringcoconutsandcatchingfish.IfCrusoelivesbyhimself,thisfrontierlimitshisconsumptionofcoconutsandfish,butifhecantradewithnativesontheislandhewillbeab
2、letoconsumeatapointoutsidehisproductionpossibilitiesfrontier.Figure12.Crusoe’sopportunitycostofcatchingonefishis10coconuts,sincehecangather10coconutsinthesameamountoftimeittakestocatchonefish.Friday’sopportunitycostofcatchingonefishis15coconuts,sincehecangath
3、er30coconutsinthesameamountoftimeittakestocatchtwofish.Fridayhasanabsoluteadvantageincatchingfish,sincehecancatchtwoperhour,whileCrusoecanonlycatchoneperhour.ButCrusoehasacomparativeadvantageincatchingfish,sincehisopportunitycostofcatchingafishislessthanFrida
4、y’s.3.Iftheworld’sfastesttypisthappenstobetrainedinbrainsurgery,heshouldhireasecretary.Hehasanabsoluteadvantageintyping,butacomparativeadvantageinbrainsurgery,sincehisopportunitycostinbrainsurgeryislowcomparedtotheopportunitycostforotherpeople.QuestionsforRev
5、iew1.Absoluteadvantagereflectsacomparisonoftheproductivityofoneperson,firm,ornationtothatofanother,whilecomparativeadvantageisbasedontherelativeopportunitycostsofthepersons,firms,ornations.Whileaperson,firm,ornationmayhaveanabsoluteadvantageinproducingeverygo
6、od,theycan'thaveacomparativeadvantageineverygood.2.Manyexamplesarepossible.Suppose,forexample,thatRogercanprepareafinemealofhotdogsandmacaroniinjusttenminutes,whileittakesAnitatwentyminutes.AndRogercandoallthewashinthreehours,whileittakesAnitafourhours.Rogerh
7、asanabsoluteadvantageinbothcookinganddoingthewash,butAnitahasacomparativeadvantageindoingthewash(thewashtakesthesameamountoftimeas12meals,whileittakesRoger18meals'worthoftime).3.Comparativeadvantageismoreimportantfortradethanabsoluteadvantage.Intheexampleinpr
8、oblem2,AnitaandRogerwillcompletetheirchoresmorequicklyifAnitadoesatleastsomeofthewashandRogercooksthefinemealsforboth,becauseAnitahasacomparativeadvantageindoingthewash,whileRogerhasacomp
