-Refer to Table 3-2

question 63

Multiple Choice

-Refer to Table 3-2. What does each producer have an absolute advantage in?

• A) The farmer has an absolute advantage in meat, and the rancher has an absolute advantage in potatoes.
• B) The farmer has an absolute advantage in neither, and the rancher has an absolute advantage in meat.
• C) The farmer has an absolute advantage in potatoes good, and the rancher has an absolute advantage in both goods.
• D) The farmer has an absolute advantage in potatoes, and the rancher has an absolute advantage in neither good.

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Definitions:

Fishing

The activity of catching fish for commercial, recreational, or subsistence purposes.

Total Allowable Catch (TAC)

The overall limit set by a government or a fisheries commission on the total number of fish or tonnage of fish that fishers collectively can harvest during some particular time period. Used to set the fishing limits for individual transferable quotas (ITQs).

Pacific Halibut

A species of flatfish found in the North Pacific Ocean, known for its commercial and recreational value.

ITQs

Individual Transferable Quotas, a common market-based tool used to regulate fishing efforts and conserve fish stocks by allocating specific catch limits to fishers.