Table 2-19 Table 2-19 Shows the Output Per Month of Month

question 215

Multiple Choice

Table 2-19
Table 2-19 shows the output per month of two people, Wilma and Betty. They can either devote their time to making marble statues or making marble benches.
-Refer to Table 2-19. Which of the following statements is true?

• A) Wilma has an absolute advantage in making both products.
• B) Betty has an absolute advantage in making both products.
• C) Betty has an absolute advantage in making statues and Wilma in making benches.
• D) Betty has an absolute advantage in making benches and Wilma in making statues.

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Definitions:

Farmers

Individuals or entities engaged in the activity of agriculture, which includes the cultivation of plants and rearing of animals for food, fiber, biofuel, medicines, and other products used to sustain and enhance human life.

Optimal Allocation

The most efficient distribution of resources within an economy to maximize the output or welfare.

MB = MC

A principle in economics indicating the optimal level of output or consumption, where the marginal benefit (MB) equals the marginal cost (MC).

Marginal Benefit

The added utility or pleasure that comes from the consumption of one more unit of a good or service.