Tom and Jerry Have One Day to Work, but Two

question 112

Multiple Choice

Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. After looking at the production possibilities for both Tom and Jerry, what can we conclude?

• A) Tom has a comparative advantage at producing chairs.
• B) Jerry has a comparative advantage at producing chairs.
• C) Tom has a comparative advantage at producing tables.
• D) Neither Tom nor Jerry has a comparative advantage at producing either good.

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Definitions:

False Eye Lashes

Artificial lashes applied to enhance the length, curl, fullness, and thickness of natural eyelashes.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer derives from consuming an additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a certain quantity of goods or services.

Consumer Surplus

The difference between the maximum amount a consumer is willing to pay for a good or service and the actual amount they do pay.