Which of the Following Describes Comparative Advantage

question 63

Multiple Choice

Which of the following describes comparative advantage?

• A) Company A can produce 4 boxes of cereal in a day, whereas Company B can produce 5 boxes of cereal in a day.
• B) Firm A can produce a good at a cost of $3 and Firm B can produce the same good at a cost of $4.
• C) Jane can type 50 words per minute and Joe can type 60 words per minute.
• D) To produce a tonne of wheat Farmer John must give up 2 tonnes of corn, whereas Farmer Ben must give up 3 tonnes of corn.

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Definitions:

Personal Fable

An aspect of adolescent egocentrism characterized by an adolescent’s belief that their thoughts, feelings, and experiences are unique, more wonderful, or more awful than anyone else’s.

Adolescent Egocentrism

A characteristic of teenage thinking leading to an increased self-consciousness, where adolescents believe they are the focus of everyone else's attention.

Deductive Thinking

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Inductive Thinking

A reasoning process that involves drawing general conclusions from specific observations or instances.