Which of the Following Describes Comparative Advantage

question 339

Multiple Choice

Which of the following describes comparative advantage?

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

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Definitions:

Bona Fide Purchaser

A person who buys property in good faith, with no knowledge of any defects in title or other issues that might impede their rights to that property.

Fraudulently Transfers

The act of illegally transferring assets or property to another party to avoid debt obligations or legal consequences.

Receivership

A proceeding in which a receiver is appointed for an insolvent corporation, partnership, or individual to take possession of its assets for ultimate sale and distribution to creditors.

Bankruptcy

A legal proceeding involving a person or business unable to repay outstanding debts, resulting in the distribution of assets to creditors or relief of debts.