Don Can Produce 10 Pens or 20 Pencils in One

question 125

Multiple Choice

Don can produce 10 pens or 20 pencils in one hour while Bob can produce 5 pencils or 15 pens in one hour.Which of the following statements is correct?

• A)Don has an absolute advantage over Bob in the production of pencils and Bob in the production of pens
• B)Bob has an absolute advantage over Don in the production of pencils
• C)Bob has a comparative advantage over Don in the production of pens
• D)Don has a comparative advantage over Bob in the production of pens
• E)Don does not have a comparative advantage in the production of either good

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Definitions:

Great Awakening

A series of intense religious revivals in the American colonies in the 18th century that emphasized personal faith and emotional connection to God.

American Revolution

The American Revolution was a colonial revolt between 1765 and 1783 against British rule, leading to the founding of the United States of America.

Wealth

An abundance of valuable possessions or money, or the state of controlling or owning such resources.

Religion

A structured system of beliefs, practices, and worship dedicated to a higher power or deity.