If Shawn Can Produce Donuts at a Lower Opportunity Cost

question 136

Multiple Choice

If Shawn can produce donuts at a lower opportunity cost than Sue, then

• A) Shawn has a comparative advantage in the production of donuts.
• B) Sue has a comparative advantage in the production of donuts.
• C) Shawn should not produce donuts.
• D) Shawn is capable of producing more donuts than Sue in a given amount of time.

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Definitions:

Transportation

The movement of people or goods from one location to another by various modes such as road, rail, air, or sea.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Manufacturers

Companies or individuals that produce finished goods from raw materials through various processes, machinery, and operations.

Labour Productivity

A measure of economic performance that calculates the amount of goods and services produced by one hour of labor.