?Hair Pins /hourBandanas /hourNigel410Mia93Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 18.3. Which of the following is TRUE?

A. Nigel has an absolute advantage in producing hair pins but not bandanas.
B. Nigel has an absolute advantage in producing bandanas but not hair pins.
C. Nigel has an absolute advantage in producing both goods.
D. Nigel does not have an absolute advantage in producing either good.


Answer: B

Economics

You might also like to view...

A rise in input prices of oil, which affects many or most firms across the economy, can cause the aggregate supply curve to______________.

a. shift b. incline c. decline d. flatten

Economics

The Federal Reserve System was created by the:

A. U.S. Treasury. B. President. C. Congress. D. Supreme Court.

Economics

Monopolistic competition and perfect competition are different in that

A) only monopolistically competitive firms advertise. B) only monopolistically competitive firms can earn economic losses in the short-run. C) only perfectly competitive firms maximize profits where marginal revenue equals marginal cost. D) only perfectly competitive firms are characterized by long-run economic profits of zero.

Economics

Which of the following provides health-care coverage to people age 65 and over?

A) Medicaid B) Medicare C) Social Security D) Health-Aid

Economics