Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather more mangoes per hour than Maryann and can also catch more fish per hour than can Maryann. Therefore:
A. there are no gains to specialization and trade for Maryann.
B. Maryann should specialize in the activity for which she has a comparative advantage.
C. Ginger should specialize in the activity for which she has an absolute advantage.
D. there are no gains to specialization and trade for Ginger.
Answer: B
You might also like to view...
The narrowest definition of the money supply is
A) M1. B) M2. C) the difference between M2 and M1. D) the sum of M1 and M2.
A dominant strategy is a
A. negative-sum strategy. B. player's best strategy when she can make the first move. C. last-mover strategy. D. player's best strategy regardless whatever strategies are adopted by the rivals.
Suppose the intersection of the IS and LM curves is to the left of the FE line. A decrease in the price level would most likely eliminate a disequilibrium among the asset, labor, and goods markets by
A) shifting the LM curve down and to the right. B) shifting the IS curve up and to the right. C) shifting the IS curve down and to the left. D) shifting the FE curve to the left.
The United Nations' goal of reducing the global rate of extreme poverty to 15 percent by 2015 is known as the
A. Millennium Poverty Goal. B. Global Poverty Goal. C. United Nations' Poverty Goal. D. World Poverty Goal.