If Dana can paint his house faster than Luke, a professional house painter, then:

A. Dana has a comparative advantage in house painting.
B. Dana has an absolute advantage in house painting.
C. Luke has a comparative advantage in house painting.
D. Luke has an absolute advantage in house painting.


Answer: B

Economics

You might also like to view...

What is deadweight loss and under what conditions does it occur?

What will be an ideal response?

Economics

Water subsidies to irrigators

a. Tend to increase economic efficiency b. Tend to internalize externalities c. Tend to increase water prices d. Tend to increase the quantity of water used e. Tend to promote water conservation

Economics

Comparing the European and the U.S. central bank systems, the Executive Board of the European system resembles:

A. the Board of Governors. B. the FOMC. C. the Presidents of the regional Federal Reserve Banks. D. the Chairman of the Board of Governors of the Fed.

Economics

When determining inflation, the price level in each period is typically reported as an index number, rather than as the _______________ amount for buying the basket of goods.

a. total b. relative c. dollar d. combined

Economics