1. Ch. 3 Self Test True False: #13 = False 5 hamburgers per hour or 10 bags French fries The OC of bag fries = 5/10 = 0.5 hamburgers

2. #27 4 watches or 12 rings per hour Oc 1 watch = 12/4 = 3 rings Oc 1 ring = 1/3 watch

3. #29-36 Aust 20 food 5 elect Korea 8 food 4 elect Aust – Abs. adv in both Aust oc 1 food = 5/20 = ¼ electr Korea oc 1 food = 4/8 = ½ electr Aust. has Comp Adv in food Price of food = between ¼ and ½ elect.

4. Aust 20 food 5 elect Korea 8 food 4 elect Aust oc 1 elect = 20/5 = 4 food Korea oc 1 elect = 8/4 = 2 food Korea has Comp Ad in elect Price of 1 elect = between 2 and 4 food

5. #38-40 Argentina 10 fruit 5 beef Peru 6 fruit 2 beef Argentina has Abs. Adv in both Argentina oc of 1 fruit = ½ beef Peru oc of 1 fruit = 1/3 beef Peru has Comp Adv in Fruit Argentina oc of 1 beef = 2 fruit Peru oc of 1 beef = 3 fruit Argentina has Comp Adv in beef

6. #41 Joe $100/hour tax returns type 10,000 characters/hour Assistant type 2,500 characters/hour ¼ as productive typing as Joe So pay the assistant less than ¼ of Joe’s salary (less than $25 /hour) If Joe types – he gives up 1 hour = $100 If hires assistant – it takes them 4 hours. If pay them $25 hour – still costs Joe $100 to get the job done that he can do himself If hires assistant – pay them any thing less than $25 / hour