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Posted: August 10th, 2024
1. Suppose that a local government decides to provide more funds to the local policedepartment in order for the department to hire additional police officers. Is there anopportunity cost of this action? If so, how would you measure it?2. Michael Jordan has more athletic ability than most individuals. Thus, he is moreproductive at most tasks involving physical skill. Explain why then, it is more efficientfor Michael Jordan to pay someone else to mow his lawn.3. Because of the quantity and quality of its resources, the U.S. has an absolute advantage inthe production of many goods and services. Does this imply that the U.S. cannot benefitfrom trading with a developing country that has less productive ability? Why or whynot?4. Explain Ricardo’s theory of comparative advantage
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