Use the Information Below to Answer the Following Questions

question 41

Multiple Choice

Use the information below to answer the following questions.
Fact 2.3.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in a hour.
-Refer to Fact 2.3.2.Which one of the following statements is true?

• A)Brenda has a comparative advantage in the production of X.
• B)Agnes will not gain from trade.
• C)Brenda will not gain from trade.
• D)Brenda has an absolute advantage over Agnes in the production of both goods.
• E)Agnes has a comparative advantage in the production of Y.

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Definitions:

Implied Warranty of Merchantability

A legal presumption that goods sold by a merchant are fit for the general purpose for which they are sold and meet the standards of quality and performance that are reasonable to expect.

Disclaimer

A statement that denies responsibility or affiliation with information, products, or services.

Express Warranty

A legal term referring to a formal, written guarantee by a seller to a buyer that a product or service meets certain specifications.

Affirmations

Positive statements or declarations, often used in contracts, that something is true.