Table 3.3 -Consider Two Individuals,Bob and Jerry,who Produce Guitars and Banjos.Bob and Banjos.Bob

question 25

Multiple Choice

Table 3.3
-Consider two individuals,Bob and Jerry,who produce guitars and banjos.Bob and Jerry's weekly productivity are shown in Table 3.3.Which of the following is true?

• A) Bob has an absolute advantage in producing both goods, and a comparative advantage in producing guitars.
• B) Bob has an absolute advantage in producing both goods, and a comparative advantage in producing banjos.
• C) Bob has an absolute and a comparative advantage in producing both goods.
• D) Bob has an absolute advantage in producing both goods, but no one has a comparative advantage in producing either good.

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Definitions:

Domestic Output

The combined worth of all items and services produced domestically within a nation in a set period of time.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Discrimination Coefficient

A measure used in economics to quantify the extent to which individuals or groups are treated differently, often in the context of market transactions or employment.

Wage Rate

The amount of compensation a worker receives in exchange for their labor, typically expressed per hour or year.