In One Hour John Can Produce 20 Loaves of Bread

question 57

Multiple Choice

In one hour John can produce 20 loaves of bread or 8 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true?

• A) Phyllis has an absolute advantage in both goods.
• B) Phyllis has a comparative advantage in producing both cakes and bread.
• C) John has an absolute advantage in both goods.
• D) John has a comparative advantage in producing cakes.
• E) Phyllis has a comparative advantage in producing bread.

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Definitions:

Hypothalamus

A region of the brain below the thalamus, coordinating both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Biological Needs

Essential requirements for the survival and physiological well-being of living organisms, such as food, water, shelter, and oxygen.

Inhibit Emotional Reactions

The process of deliberately suppressing or regulating emotional responses to stimuli or situations.

Sensory Integration

The process by which the brain combines information taken in through the senses to make a whole, coherent picture of the environment.