If Luke can bake bread at a lower opportunity cost than Jason, and Jason can produce paintings at a lower opportunity cost than Luke, it follows that
A) Luke has a comparative advantage in paintings and Jason has a comparative advantage in baking bread.
B) Both Luke and Jason have a comparative advantage in baking bread.
C) Both Luke and Jason have a comparative disadvantage in producing paintings.
D) Luke has a comparative advantage in baking bread and Jason has a comparative advantage in producing paintings.
E) There is not enough information to answer the question.
D
You might also like to view...
In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions can affect other divisions d. Managers typically do not have the incentives to run their division efficiently
What effect will expansionary fiscal policy have on the economy, according to new classical economists?
If the number of highway deaths among young people is roughly proportional to their beer consumption, and young people's elasticity of demand for beer is 1.5, then to decrease highway deaths of young people by 15 percent, taxes would need to be increased enough to increase the price of beer by:
A. 1%. B. 1.5%. C. 10%. D. 15%.
Most Americans agree that
A. a certain amount of income redistribution is called for. B. absolutely no income redistribution should be carried out. C. we need completely equal distribution of income.