Solved

Use the Following Scenario to Answer the Following Questions

Question 16

Multiple Choice

Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,Karl has


A) a comparative advantage in producing cars,but not trucks.
B) a comparative advantage in producing trucks,but not cars.
C) a comparative advantage in producing both goods.
D) a comparative advantage in producing neither good.
E) no absolute advantage.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions