If Kami can produce 40 wireless earbuds or 30 cellphones during a month's time, while Sally can produce 10 wireless earbuds or 20 cellphones, then it is correct to state that
A. Sally has a comparative advantage in producing both wireless earbuds and cellphones.
B. Kami has a comparative advantage in producing wireless earbuds.
C. Kami has a comparative advantage in producing both wireless earbuds and cellphones.
D. Sally has an absolute advantage in wireless earbuds.
Answer: B
You might also like to view...
U.S. government regulation of social and economic activity
A) only began after World War II. B) costs less now than it did in the 1980s. C) has increased steadily since 1970. D) is confined to antitrust law.
The aggregate supply curve is the relationship between the price level and the quantity of real GDP purchased
a. True b. False Indicate whether the statement is true or false
Between 2006 and 2008, the average price of homes decreased by what percent?
a. 2% b. 12% c. 22% d. 32%
Inflation is
A. generally steady from year to year. B. generally beneficial to countries. C. one of the key measures in the GDP. D. one of the key measures of the health of an economy.