There Are Two Goods, X and Y

question 9

Multiple Choice

There are two goods, X and Y. If the opportunity cost of producing good X is lower for Pam than for Gino, then

• A)Pam has an absolute advantage in the production of X.
• B)Gino has an absolute advantage in the production of Y.
• C)Pam has a comparative advantage in the production of X.
• D)Gino has a comparative advantage in the production of Y.
• E)C and D

---

Definitions:

Two-part Tariff

A pricing mechanism that consists of a fixed fee plus a variable charge for every unit of the good or service consumed.

Estate Planning Services

Professional services aimed at assisting individuals in managing the distribution of their assets and wealth after their death.

Two-part Tariff

A pricing strategy where the price of a product or service is composed of two parts: a fixed fee plus a variable charge based on usage or consumption.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.