Refer to the Following Table to Answer the Questions That

question 56

Multiple Choice

Refer to the following table to answer the questions that follow.

-Given an eight-hour workday,which statement best describes the absolute advantage evident in the table?

• A) Jay-Z has an absolute advantage in making pizzas, and Alicia Keys has an absolute advantage in making cheesesteaks.
• B) Alicia Keys has an absolute advantage in making pizzas, and Jay-Z has an absolute advantage in making cheesesteaks.
• C) Jay-Z has an absolute advantage in the production of both foods.
• D) Alicia Keys has an absolute advantage in the production of both foods.
• E) Neither party has an absolute advantage.

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Definitions:

Excise Tax

A tax on the sale or use of specific products or transactions, typically integrated directly into the cost of the good.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influenced by the availability of substitutes.

Benefits Principle

A concept suggesting that people should pay taxes based on the benefits they receive from government services, aiming for fairness in tax distribution.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.