Itchy Scratchy Bombs 10 8 Missiles 6 4 The table above shows how many bombs or missiles Itchy and Scratchy can produce in one year. (For example, Itchy could produce 10 bombs or 6 missiles in a year.) Which of the following is an accurate statement about comparative advantage?
a. Itchy has the comparative advantage in both goods.
b. Scratchy has the comparative advantage in both goods.
c. No one has the comparative advantage in missiles.
d. Itchy has the comparative advantage in bombs, while Scratchy has the comparative advantage in missiles. Incorrect, Please review Top Ten Concept # 2.
e. Itchy has the comparative advantage in missiles, while Scratchy has the comparative advantage in bombs.
e. Itchy has the comparative advantage in missiles, while Scratchy has the comparative advantage in bombs.
You might also like to view...
People know that the inflation rate will increase from 3 percent to 5 percent. As a result
A) the nominal interest rate falls by 2 percentage points. B) the nominal interest rate is constant. C) the nominal interest rate rises by 2 percentage points. D) the real interest rate rises by 2 percentage points.
With regional specialization, a nation is bound to suffer some mismatch unemployment. For example, in the early 1990s the highest regional unemployment rate was in
A) California. B) the South. C) the Midwest. D) none of the above because the unemployment rate as essentially equal in all regions.
Intertemporal decisions involve economic decisions
A) made within a given period of time. B) made in between two periods of time. C) involving trade-offs across periods of time. D) that ignore concerns about the future.
Insufficient _____ can make regulation counterproductive
a. information b. funding c. monitoring d. time