If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour,and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour,then Tom has a comparative advantage in writing multiple choice questions.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by who has the lower opportunity cost in producing a good. Tom's opportunity cost of producing 20 multiple choice questions is giving up the production of 30 true/false questions (1.5 true/false questions per multiple choice question), while Mary's opportunity cost of producing 15 multiple choice questions is giving up the production of 15 true/false questions (1 true/false question per multiple choice question). Since Mary gives up less to produce a multiple choice question, she has the comparative advantage in writing multiple choice questions, not Tom.

If Tom Can Produce 20 Multiple Choice Questions or 30