Consider Two Individuals - Marquis and Serena - Each of Whom

question 31

Multiple Choice

Consider two individuals - Marquis and Serena - each of whom would like to wear sweaters and eat tasty food.The gains from trade between Marquis and Serena are most obvious in which of the following cases?

• A)Marquis is very good at knitting sweaters and at cooking tasty food,but Serena's skills in both of these activities are very poor.
• B)Marquis and Serena both are very good at cooking tasty food,but neither has the necessary skills to knit a sweater.
• C)Marquis's cooking and knitting skills are very poor,and Serena's cooking and knitting skills are also very poor.
• D)Marquis's skills are such that he can produce only sweaters,and Serena's skills are such that she can produce only tasty food.

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Definitions:

Opportunity Cost

Opportunity cost represents the value of the best alternative forgone when a decision is made to choose one option over another.

Bushel

A measure of volume that is used primarily for agricultural crops, with the exact measurement differing by product.

Bananas

A type of elongated, edible fruit produced by several kinds of large herbaceous flowering plants in the genus Musa.

Comparative Advantage

The ability of a country or firm to produce a particular good or service more efficiently than other goods or services, relative to other countries or firms.