Mikhail and Stefan Are Both Artists Who Can Create Sculptures

question 142

Multiple Choice

Mikhail and Stefan are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.
Use this table to answer the following questions.
-Based on the table,does Mikhail or Stefan have an absolute advantage?

• A) Yes,Mikhail has an absolute advantage in both sculptures and paintings.
• B) Yes,Stefan has an absolute advantage in both sculptures and paintings.
• C) Yes,Mikhail has an absolute advantage in paintings,and Stefan has an absolute advantage in sculptures.
• D) Yes,Mikhail has an absolute advantage in sculptures,and Stefan has an absolute advantage in paintings.
• E) No,neither has an absolute advantage.

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Definitions:

Zero-coupon Bond

A bond that does not pay interest during its life but is sold at a deep discount from its face value and pays its face value at maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and capital gains or losses.

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the value assigned to a stock for accounting purposes, respectively.

Matures

Refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.