Use the Following Scenario to Answer the Following Questions

question 61

Multiple Choice

Use the following scenario to answer the following questions:
Natasha can produce either 5,000 pounds of cheese or 20 houses per year.Jameson can produce either 5,000 pounds of cheese or 10 houses per year.
-Natasha has a comparative advantage in the production of ________,and Jameson has a comparative advantage in the production of ________.

• A) houses; houses
• B) houses; cheese
• C) cheese; houses
• D) both goods; houses
• E) both goods; cheese

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Definitions:

Price

The monetary value needed to obtain a product, service, or investment.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specific period.

Substitute Goods

Goods or services that serve as alternatives to each other, where a rise in the cost of one results in a higher demand for the other.

Complementary Goods

Products or services that are used together, where the increase in demand for one leads to an increase in demand for the other.