Multiple Choice
Don can produce 10 pens or 20 pencils in one hour, while Bob can produce 5 pencils or 15 pens in one hour. Which of the following statements is correct?
A) Bob has an absolute advantage in the production of pencils.
B) Bob has an absolute advantage in the production of pens.
C) Bob has a comparative advantage in the production of pencils.
D) Don has a comparative advantage in the production of pens.
E) Don does not have a comparative advantage in the production of either good.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Table 2.2<br> <span class="ql-formula" data-value="\begin{array}
Q3: In one week, Sami can knit 5
Q7: Exhibit 2.1<br><br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1006/.jpg" alt="Exhibit 2.1
Q8: Opportunity cost is the difference between the
Q8: In one week, Sami can knit 5
Q9: Table 2.3<br> <span class="ql-formula" data-value="\begin{array}{l}\text
Q11: Any movement along a bowed-out production possibilities
Q29: Of the various types of economic systems,
Q38: Points inside the production possibilities frontier represent:<br>A)full
Q115: A mixed economy is one in which:<br>A)decisions