Multiple Choice
Use the information below to answer the following questions.
Fact 2.3.3
In one hour,Sue can produce 50 caps or 10 jackets,and Tessa can produce 70 caps or 7 jackets.
-Refer to Fact 2.3.3.________ has a comparative advantage in producing caps.If Sue and Tessa each specialize in producing the good in which they have a comparative advantage and trade 1 jacket for 7 caps,________.
A) Sue;Tessa gains but Sue loses
B) Tessa;Sue loses but Tessa gains
C) Sue;both Sue and Tessa gain
D) Tessa;both Sue and Tessa gain
E) Tessa;Tessa loses but Sue gains
Correct Answer:

Verified
Correct Answer:
Verified
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