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Chapter 2: Q. 2.17 (page 47)

Using only the concept of comparative advantage, evaluate this statement: 鈥淎 professor with a Ph.D. in physics should never mow his or her own lawn, because this would fail to take into account the professor's comparative advantage."

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Step by step solution

01

Step1. Introduction

Theory of comparative advantage states that a person should engage in an economic activity which he/she has a comparative advantage in, i.e. which he/she is better off at performing than the other activity.

02

Step2. Explanation 

Since the person has a PhD in Physics, it is more likely that he is better off at performing physics work than mowing land. In other aspect, he can earn better out of physics work than mowing. To check and compare between mowing land and physics work, more or less generally he would have a comparative advantage in physics work. Hence, he should not never mow land.

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