Answer:
b. the government will have a balanced budget
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The correct option is A, Samantha weed and Adam will rake because these are the goods each has a comparative advantage in.
Explanation:
The opportunity formula comes handy in this case, which is given below:
opportunity cost formula=what one sacrifices/what one gains
If Samantha were to weed flower beds, opportunity cost is computed thus:
Opportunity cost of Samantha weeding flower beds=8/4= 2 bags of leaves raked
The opportunity of Adam weeding flower beds=25/5 =5 bags of leaves raked.
In a nutshell ,if Samantha weeds flowers they would lose 2 bags of leaves raked while if Adam were to do so same, they would lose 5 bags of leaves raked, conclusively Samantha should weed flower beds since she has lower opportunity, higher comparative advantage