Bill and Jen Are the Only Two People in an Economy.Each

question 3

Multiple Choice

Bill and Jen are the only two people in an economy.Each has 10 hours in which they can either make croissants, juice or some combination of both products.In takes Bill 1 hour to make one croissant and one hour to make a litre of juice.It takes Jen 20 minutes to make a croissant and 40 minutes to make a litre of juice.Which statement is true?

• A)Bill has the comparative disadvantage in juice; Jen has the comparative disadvantage in making croissants.
• B)Bill has the comparative advantage in juice production; Jen has the comparative advantage in making croissants.
• C)Bill has the comparative advantage in croissants and juice.
• D)Bill has the comparative advantage in croissants; Jen has the comparative advantage in making juice.
• E)Jen has the comparative advantage in producing both goods.

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Definitions:

Cool-Out

A strategy used to gently persuade someone who has failed or is unable to achieve a certain goal to accept a less desirable but still reasonable outcome without feeling embarrassed or disappointed.

Managed Impression

Intentional efforts to control or influence other people's perceptions about oneself or a situation.

Solemn Explanation

A serious and thorough clarification or interpretation of a subject or event.

Cues of Deceit

Observable signs or indicators that may suggest an individual is lying or being deceptive.