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Opportunity Cost Review

Willing Students of Justice, let's review. Consider the following:

 

  Snow Shoveling Car Repairing
Photo of Jack Jack 1/2 hour 1/2 hour
Photo of Andy Andy 1 hour 2 hours

 

Given the time associated with each task, if both Jack and Andy repair a car, who has the lower opportunity cost and why?
 

A. Jack, because if he fixes a car, he gives up shoveling 1 driveway.

B. Andy, because Jack has the absolute advantage.

C. Jack, because he could shovel four driveways in the time Andy fixed one car.

D. Andy, because he misses the opportunity to shovel two driveways and Jack misses the opportunity to shovel one driveway.

 

Before discussing comparative advantage, let's practice determining opportunity costs.

Use the information in the table below to calculate the opportunity costs for Jack and Andy in the questions that follow. Use the keyboard to enter your answer and click "check answer" to find out if you're right. (Input your answer as a decimal instead of fraction where applicable.)

 

  Carpet Replacement Book Report Writing
Photo of Jack Jack 1 hour 4 hours
Photo of Andy Andy 4 hours 2 hours

 

What is Jack's opportunity cost for carpet replacement?
 

book reports

Check Answer
What is Jack's opportunity cost for writing a book report?
 

carpet replacements

Check Answer
What is Andy's opportunity cost for carpet replacement?
 

book reports

Check Answer
What is Andy's opportunity cost for writing a book report?
 

carpet replacements

Check Answer
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