Carlos is an executive of a major corporation. Boris is a baker. Carlos earns a salary ten times as large as the salary Boris earns, and Carlos has a much larger oven for baking break
Carlos can make a loaf of bread that tastes better than Boris's bread but Boris can bake faster. A) Carlos has an absolute and comparative advantage over Boris in making bread.
B) Carlos has an absolute but not comparative advantage over Boris in making bread.
C) Carlos had a comparative but not absolute advantage over Boris in making bread.
D) Carlos does not have an absolute or comparative advantage over Boris in making bread.
B
You might also like to view...
Which of the following is an example of the recognition lag?
A. The recession began in July, but the data did not confirm that fact for seven more months. B. Fearing inflation, the Fed reduced the money supply in March, but the aggregate demand did not begin to shift to the left until November. C. The aggregate demand initially shifted to the right in January, but did not fully shift until October. D. Once the recession was recognized, it took three months to formulate a new policy to combat it.
Joe and Rita each have some cookies and milk. Joe is willing to trade 2 cookies for an additional ounce of milk. Rita is willing to trade 4 cookies for an additional ounce of milk
If trading is possible, which of the following is most likely to occur? A) Joe will give some milk to Rita in exchange for cookies. B) Rita will give some milk to Joe in exchange for cookies. C) No trade will take place since they both prefer to have more milk and fewer cookies. D) There is not enough information to make any predictions.
If Camila's income rises by 20 percent, and, as a result, she purchases 40 percent more dresses, her income elasticity for dresses is
a. 0.5. b. 1.0. c. 2.0. d. Not enough information is given to answer this question.
Borrowing VCU3 from an online company cause the nation's:
a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.