Farmers Alf and Barney can plant wheat or hay. Alf's land yields 60 bushels of wheat per acre and Barney's yields 30. Alf's land yields 3 tons of hay per acre and Barney's yields 2. Which of the following statements is true?
A) Alf has comparative advantage in both crops.
B) Barney has comparative advantage in hay.
C) Barney has comparative advantage in wheat.
source: Bergstrom, JEE 2009
The graph shows Bob's Production Possibilities Frontier for time spent at work or at school. Which statement is true?
A) The opportunity cost of an hour spent at school is an hour spent at work.
B) Jack has 10 hours to spend either at school or at work
C) If Jack spent 4 hours at school and 4 hours at work, he would have 2 hours left over doing nothing
D) All of the above
Bob could move from the solid PPF to the dashed PPF by:
A) Finding a new job that pays a higher wage
B) Studying fewer hours but studying more effectively
C) Devoting fewer hours to sleeping
D) Spending more time hanging out with his friends
Your company has given you four tickets for an upcoming concert with instructions to distribute them to your employees (but with no information about why or how to distribute them). What is the best way to allocate the tickets? [Note: if you do the ticket-trading activity, you could phrase this more generally as 'Which of the following would be the best way to allocate the tickets' and list the general mechanisms]
A) Let people bid (auction)
B) Hold a drawing (lottery)
C) Have individuals make a case why they need the tickets (need)
D) Give them to your most productive employee (merit)
E) Give them to whoever you want (dictator)