Suppose Ethan and Ava work in a farm that grows apples and oranges of the same size. In one hour, Ethan can pick 8 pounds of apples or 1 pound of oranges. Ava can pick 6 pounds of apples or 1 pound of oranges. It can be concluded that
A) Ava has a comparative advantage in picking apples.
B) Ava has an absolute advantage in picking apples.
C) Ethan has a comparative advantage in picking apples.
D) Ethan has an absolute advantage in picking oranges.
C
You might also like to view...
Which of the following is least likely to cause a shift of the consumption function?
a. A change in the level of saving b. A change in consumer expectations about future prices c. A change in household wealth d. A change in investment spending e. A change in the interest rate
Production for war and environmental clean-up services are not included in GDP
a. True b. False Indicate whether the statement is true or false
An industry that has many firms producing differentiated products is classified as ______________.
Fill in the blank(s) with the appropriate word(s).
The term scarcity in economics refers to the fact that:
a. No country can produce enough products to satisfy everybody's economic wants b. Even in the richest country some people go hungry c. Economic wants are limited and resources are abused d. It is impossible to produce too much of any particular good or service in a market economy