When Mike Has an Absolute Advantage in the Production of Two

question 61

Multiple Choice

When Mike has an absolute advantage in the production of two goods over Tommy, Mike

• A) is better off if he does not engage in specialisation and trade with Tommy.
• B) is more productive in producing both goods than Tommy.
• C) is less productive than Tommy.
• D) cannot gain from trade with Tommy.
• E) always has a comparative advantage over Tommy in the production of both goods.

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Definitions:

Divisor

The number used to divide into another number.

Bracket

A support device used in construction and orthodontics, often made of metal, that holds objects together or attaches them to a surface.

Metric Unit

A standard unit of measurement based on the metric system, such as meter for length, kilogram for mass, and second for time.

Length

The measurement of something from end to end or the extent of something in space.