Suppose Joe Can Prepare 20 Sandwiches or 10 Pizzas in an Hour

question 60

Multiple Choice

Suppose Joe can prepare 20 sandwiches or 10 pizzas in an hour and Beth can produce 36 sandwiches or 27 pizzas. The concept of comparative advantage concludes that

• A) Beth should produce sandwiches and Joe should produce pizza.
• B) Beth should produce both goods because she can produce more of both goods in an hour than can Joe.
• C) Beth should produce pizza and Joe should produce sandwiches.
• D) Beth should produce both goods and Joe should produce sandwiches.

---

Definitions:

Federal Reserve Banks

The regional banks of the Federal Reserve System, the central bank of the United States, which regulate and serve banks, execute monetary policy, and provide financial services.

Privately Owned

Businesses or properties owned by individuals or corporations rather than by the government or public entities.

Publicly Controlled

Operations or organizations that are owned, operated, or regulated by the government or public authorities.

Economic Welfare

The overall well-being of individuals and communities in terms of wealth, health, and happiness, often assessed by indicators like GDP and quality of life measures.