Paulene and Charles, the Only Two People in an Economy

question 1

Multiple Choice

Paulene and Charles, the only two people in an economy, can spend their time making either herbs or eggs.Each has four hours in total to work.Paulene can make either 36 bunches of herbs and 0 dozen eggs or no herbs and 12 dozen eggs in her four hours.Charles on the other hand can make 16 bunches of herbs if he spends all his time on herb production (and no eggs) or he can make eight dozen eggs in his four hours (and no herbs) .Which statement is true?

• A)Paulene has the comparative advantage in egg production Charles has the comparative advantage in producing eggs.
• B)Paulene has the comparative advantage in herb production Charles has the comparative advantage in producing eggs.
• C)Paulene has the comparative advantage in egg production Charles has the comparative advantage in producing herbs.
• D)Paulene has the comparative disadvantage in producing both goods.
• E)Charles has a comparative disadvantage in producing both goods.

---

Definitions:

Online Sales Messages

Communications designed to promote or sell products or services through digital platforms.

Direct-Mail Messages

Targeted written communications sent to individuals through postal or electronic means to promote a product or service.

Organizational Strategy

A plan of action designed to achieve long-term or overall aims and objectives of an organization.

Rational Appeal

A strategy in persuasive communication that uses logical arguments and evidence to convince others of a particular point of view.