Figure 3-2 -Refer to Figure 3-2. What Do the Two Producers Have

question 98

Multiple Choice

Figure 3-2
-Refer to Figure 3-2. What do the two producers have an absolute advantage in?

• A) Paul has an absolute advantage in both wheat and corn.
• B) Paul has an absolute advantage in wheat, and Cliff has an absolute advantage in corn.
• C) Cliff has an absolute advantage in wheat, and Paul has an absolute advantage in corn.
• D) Cliff has an absolute advantage in both wheat and corn.

---

Definitions:

Additional Revenues

Income received by a business or organization that is supplementary to its primary revenue sources, often from non-core business activities.

Retirement Savings Contributions Credit

A tax credit available to lower-income individuals making contributions to retirement accounts, encouraging savings.

Income Level

A measure of an individual or household's gross income before taxes and deductions.

Credit

A direct reduction of the tax owed to the government, distinct from deductions, which reduce the amount of income subject to tax.