Multiple Choice
Assume that two goods exchange according to the average amount of labor that goes into producing each of them. If it takes 2 hours to produce a pie and 1 hour to produce a cake, then if Sam has 1 cake to sell
A) he could exchange his cake for 2 pies
B) he could exchange is cake for ½ of a pie
C) he could exchange his cake for 1 pie.
D) he could exchange his cake for 2 other cakes.
Correct Answer:
Verified
Correct Answer:
Verified
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