?Kites /hourSnowboards /hourJesse81April123Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is true?

A. April has a comparative advantage in painting kites but not snowboards.
B. April has a comparative advantage in painting snowboards but not kites.
C. April has a comparative advantage in painting both goods.
D. April does not have a comparative advantage in painting either good.


Answer: B

Economics

You might also like to view...

The decision that households make to save is independent of the decisions businesses make to invest

Indicate whether the statement is true or false

Economics

Americans viewed the 12 percent mortgage interest rates of the 1980s as exorbitantly high while they considered the 7 percent mortgage interest rates of the late 1990s as reasonable. This represents a confusion of

a. actual and expected inflation. b. real versus nominal inflation. c. real versus expected mortgage payments. d. real versus nominal interest rates.

Economics

Which of the following might break the link in the Keynesian transmission mechanism between the expansionary monetary policy and the goods-and-services market?

A) a downward-sloping investment demand curve B) a vertical money supply curve C) a belief on the part of individuals that bond prices are extraordinarily low D) all of the above E) none of the above

Economics

A research project is conducted by offering a randomly selected 300 of the 500 local Toyota Prius owners a chance to use a new fuel additive for 6 months to see if their gas mileage improves. 225 of the 300 randomly selected Prius owners agree to the offer, 50 of those drop out of the project after 1 month, another 50 drop out after 2 months, and 25 more drop out after 3 months. The rest remain for the duration of the project. Using the intention to treat method, the results from how many of the Prius owners who were randomly selected should be included in the research project?

A. 100 B. 200 C. 225 D. 300

Economics