If Sam can chop up more carrots per minute than Joe can, then
a. Joe has an absolute advantage in carrot chopping
b. Joe must have a comparative advantage in carrot chopping
c. Sam has an absolute advantage in carrot chopping
d. Sam must have a comparative advantage in carrot chopping
e. we can conclude nothing about absolute advantage
C
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The supply curve of dollars in the foreign exchange market is:
A) downward sloping. B) upward sloping. C) horizontal. D) vertical.
The crowding-out effect implies that a government budget deficit ________ the demand for loanable funds and ________ equilibrium investment
A) increases; decreases B) does not change; does not change C) increases; increases D) decreases; decreases E) decreases; increases
An economist would describe college fees as
A. an investment in human capital. B. a transfer payment. C. a waste of parents’ money. D. an economic loss.
Bertrand duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. The equilibrium price and quantity for the total market will be
A. Q = 45, P = 45. B. Q = 30, P = 60. C. Q = 40, P = 50. D. Q = 60, P = 30.