(Table) According to the Data in the Table, Who Has

question 40

Multiple Choice

(Table) According to the data in the table, who has an absolute advantage in the production of shirts? $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Hours to Produce a } \\\text { Shirt }\end{array} & \begin{array} { l } \text { Hours to Produce } \\\text { a Cake }\end{array} \\\hline \text { Tom } & 5 & 3 \\\hline \text { Joe } & 6 & 4 \\\hline\end{array}$$

• A) Tom, because he can produce more shirts in a week than Joe can
• B) Joe, because he can produce more shirts in a week than Tom can
• C) Tom, because he cannot produce as many shirts as Joe can
• D) Joe, because he cannot produce as many shirts as Tom can

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Definitions:

Supply Curve

A visual chart depicting how the price of a product or service correlates with the amount a vendor is prepared and capable of providing to the marketplace.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, usually represented as the area above the supply curve and below the market price.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to offer for sale, holding all other factors constant.

Demand Curve

A visual chart that shows how the quantity of a product demanded by buyers varies with its price.