If They Bake Only Cakes,in a Single Day George Can

question 62

Multiple Choice

If they bake only cakes,in a single day George can bake 10 cakes,and Greta can bake 5 cakes.If they make only pies,in a single day George can bake 10 pies,while Greta can bake 4 pies.We know that _____ has an absolute advantage and a comparative advantage in making _____.

• A)George;cakes
• B)George;pies
• C)Greta;cakes
• D)Greta;pies

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Definitions:

Producer Surplus

The variance between the lowest price producers agree to sell a good or service for and the price they actually get.

Demand Curve

An illustrative chart that maps out the link between a good or service's price and the amount of it people are willing to buy during a certain period.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good supplied.