If Daniel Produces One Pair of Shoes in 4 Hours

question 178

Multiple Choice

If Daniel produces one pair of shoes in 4 hours and Sarah produces one pair of shoes in 3 hours, then

• A)Sarah has a comparative advantage in shoemaking
• B)Daniel has a comparative advantage in shoemaking
• C)Sarah has an absolute and a comparative advantage in shoemaking
• D)Daniel has an absolute and a comparative advantage in shoemaking
• E)Sarah has an absolute advantage in shoemaking

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Definitions:

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An index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

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The Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.