If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour, then
A) Irene has the absolute advantage in the production of tables.
B) Greg has the absolute advantage in the production of chairs.
C) Irene has the comparative advantage in the production of chairs.
D) Greg has the comparative advantage in the production of chairs.
C
You might also like to view...
The ________ describes the relationship between the amount of labor employed and real GDP
A) production function B) production possibilities frontier C) Lucas Wedge D) inflation rate E) Okun Gap
Unemployment caused by automation would be broadly classified as
a. structural. b. frictional. c. cyclical. d. induced.
After the terrorist attacks on September 11, 2001, the United States began devoting substantial resources toward the War on Terrorism, homeland security, and relief efforts. As long as our resources were being used efficiently, the production possibilities curve would suggest that:
a. we will have to give up the production of other goods that could have been produced with these resources. b. we will be able to produce the same amount of other goods as before. c. the military spending will result in an outward shift in the production possibilities curve but that the relief effort will result in an offsetting inward shift. d. we will be unable to devote the resources necessary toward these efforts unless there is an improvement in technology.
The total tariff revenue to the government of an imported good is found by adding the tariff to the quantity of the good imported
a. True b. False Indicate whether the statement is true or false