An economy has two workers, Paula and Ricardo. Everyday they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. ________ has the comparative advantage in computers and ________ has the comparative advantage in shirts.

A. Paula; Ricardo
B. Paula; Paula
C. Ricardo; Paula
D. Ricardo; Ricardo


Answer: C

Economics

You might also like to view...

Leverage is thought to be:

A. a dangerous tool, especially for big companies who do not understand its risk. B. the most widely used of hedging risk in markets. C. the single reason for the Great depression. D. a relatively riskless strategy used by companies to grow quickly.

Economics

Which statement is false?

A. Foreigners own a much greater percentage of the assets in the U.S. then they did in the early 1980s. B. Americans have assets of over $1 trillion in foreign countries. C. The dollar value of assets held by Americans in foreign countries has been declining since 1985. D. None of these statements are false.

Economics

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.

Economics

Refer to the diagrams. The demand for Firm B's product is:



A.  perfectly elastic over all ranges of output.
B.  perfectly inelastic over all ranges of output.
C.  elastic for prices above $4 and inelastic for prices below $4.
D.  inelastic for prices above $4 and elastic for prices below $4.

Economics