Tom and Di Grow Tomatoes and Turnips

question 294

Multiple Choice

Tom and Di grow tomatoes and turnips. Tom has a comparative advantage in growing tomatoes if

• A) Tom can grow more tomatoes than Di can.
• B) his opportunity cost of tomatoes is less than Di's opportunity cost of tomatoes.
• C) his opportunity cost of tomatoes is less than his opportunity cost of turnips.
• D) his marginal benefit from tomatoes is greater than Di's.

---

Definitions:

Recession 1938

Part of the Great Depression, this downturn, also known as the "Roosevelt Recession," was characterized by a temporary economic decline during which trade and industrial activity reduced significantly.

Consumer Purchasing

The process by which individuals or households buy goods and services for personal use, driven by factors such as price, quality, and preference.

Federal Government

A system of government where powers are divided between a central (national) government and various regional governments.

Tax Burdens

The financial strain placed on individuals or businesses by the requirement to pay taxes, often described in terms of its impact on economic wellbeing.