Multiple Choice
Graph 3-2 
These figures illustrate the production possibilities available to Amy and Jim with 8 hours of labour.
-According to Graph 3-2:
A) Amy has a comparative advantage in doughnuts, and Jim has an absolute advantage in coffee
B) Amy has a comparative advantage in doughnuts, and Jim has an absolute advantage in neither goods
C) Amy has a comparative advantage in coffee, and Jim has an absolute advantage in doughnuts
D) Amy has a comparative advantage in coffee, and Jim has an absolute advantage in neither goods
Correct Answer:
Verified
Correct Answer:
Verified
Q112: Adam Smith:<br>A)was one of the first scholars
Q113: Trade is likely to:<br>A)lead to self-sustaining countries<br>B)reduce
Q114: Graph 3-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 3-2
Q115: Comparative advantage is based on:<br>A)capital costs<br>B)labour costs<br>C)dollar
Q116: Graph 3-1<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 3-1
Q118: Imports arise because:<br>A)the importing country can produce
Q119: Graph 3-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 3-2
Q120: The principle of comparative advantage was developed
Q121: Differences in opportunity cost and comparative advantage
Q122: Table 3-3<br> <span class="ql-formula" data-value="\begin{array}{|l|c|c|c|c|}\hline&\text