Homer and Teddy Are Stranded on a Desert Island

question 8

Multiple Choice

Homer and Teddy are stranded on a desert island. To feed themselves each day they can either catch fish or pick fruit. In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. Homer could pick 100 pieces of fruit or catch 150 fish. Which of the following statements is correct?

• A)Homer has an absolute advantage in picking fruit and Teddy has an absolute advantage in catching fish.
• B)Teddy has an absolute advantage in both catching fish and picking fruit.
• C)Homer has an absolute advantage in catching fish and Teddy has an absolute advantage in picking fruit.
• D)Homer has an absolute advantage in both catching fish and picking fruit.

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Definitions:

Alcohol Law

Legislation governing the sale, consumption, and distribution of alcoholic beverages within a jurisdiction.

Taco Shops

Restaurants or food outlets specializing in serving tacos and related Mexican cuisine, often characterized by their variety and regional flavors.

Equilibrium Price

The price point at which the supply of goods matches demand, leading to a stable market condition.

Income

The financial gain received from labor, capital, or the management of assets, usually measured over a certain period of time.