John and Jane Smith Are Both Economists Who Are Deciding

question 9

Multiple Choice

John and Jane Smith are both economists who are deciding how to split household chores of cooking and cleaning. They discover that John has a comparative advantage in cooking. Does this discovery tell them anything about comparative advantage in cleaning?

• A) No, both or neither may have a comparative advantage in cleaning.
• B) No, either one may have a comparative advantage in cleaning.
• C) Yes, John must also have a comparative advantage in cleaning.
• D) Yes, Jane must have a comparative advantage in cleaning.

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Definitions:

Corporate Formalities

The procedures, rules, and policies that a corporation must follow to ensure legality and protect its shareholders.

Annual Meeting

A yearly gathering of the members or shareholders of an organization to discuss its performance, elect leadership, or make decisions on corporate issues.

Directors

Directors are individuals elected to a corporation's board to oversee and guide the organization's policies and direction.

Fiduciary Duty

A legal obligation of trust requiring an individual to act in the best interests of another party, often seen in the context of trustees, guardians, and financial advisors.