Multiple Choice
Use the information below to answer the following questions.
Fact 2.4.1
In an eight-hour day, Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight-hour day, Rolfe can produce either 8 loaves of bread or 8 kilograms of butter.
-Given Fact 2.4.1, Andy and Rolfe
A) can gain from trade if Andy specializes in butter production and Rolfe specializes in bread production.
B) can gain from trade if Andy specializes in bread production and Rolfe specializes in butter production.
C) cannot gain from trade.
D) can trade, but only Rolfe will gain.
E) can trade, but only Andy will gain.
Correct Answer:

Verified
Correct Answer:
Verified
Q50: Use the information below to answer the
Q53: Use the figure below to answer the
Q54: A medical clinic has 10 workers. Each
Q55: Which of the following quotations best illustrates
Q56: Use the figure below to answer the
Q58: Which of the following is true regarding
Q86: The growth of capital resources,including human capital
Q87: In an economy lacking property rights,it would
Q129: Use the table below to answer the
Q144: Consider a production possibilities frontier with corn