Exhibit 1-3 -Refer to Exhibit 1-3. Suppose John and Jack Can Produce

question 22

Multiple Choice

Exhibit 1-3
-Refer to Exhibit 1-3. Suppose John and Jack can produce the above combinations of candy bars and ice cream bars in one hour. John and Jack can maximize their total production if

• A)both produce candy bars.
• B)both produce ice cream bars.
• C)John produces both candy bars and ice cream bars, while Jack produces nothing.
• D)Jack produces both candy bars and ice cream bars, while John produces nothing.
• E)each of them produces what he has a comparative advantage in producing.

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Definitions:

Human Capital

The economic value of a worker's experience and skills, including factors like education, training, intelligence, skills, health, and other things employers value.

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or provide their services.

Intellectual Capital

The intangible value of a company's assets such as knowledge, brand, reputation, and employee competence.

Money Market Fund

A type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents and is considered to be relatively low risk.