Table 3-3 -According to Table 3-3:
A)Europe Has an Absolute Advantage in of

question 69

Multiple Choice

Table 3-3
$\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}$
-According to Table 3-3:

• A)Europe has an absolute advantage in both goods, and the US has a comparative advantage in cars
• B)Europe has an absolute advantage in both goods, and the US has a comparative advantage in neither goods
• C)Europe has an absolute advantage in cars, and the US has a comparative advantage in aeroplanes
• D)Europe has an absolute advantage in aeroplanes, and the US has a comparative advantage in cars

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Definitions:

Positive Illusion Bias

The tendency to perceive ourselves, our abilities, and our future prospects in an overly favorable manner.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Superiority Beliefs

The conviction held by an individual that they are better, more competent, or superior to others in certain aspects.

Superior Talent

Refers to individuals possessing exceptionally higher skills or abilities in a specific domain compared to their peers.