Table 3-8 Assume That Huang and Min Can Switch Between Producing Parasols

question 331

Multiple Choice

Table 3-8
Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.

-Refer to Table 3-8.Assume that Huang and Min each has 36 labor hours available.Originally,each person divided his/her time equally between the production of parasols and plates.Now,each person spends all their time producing the good in which they have a comparative advantage.As a result,the total output of plates increased by

• A) 0.
• B) 1.5.
• C) 3.
• D) 9.

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Definitions:

Preferred Shares

Preferred shares are a type of equity security that typically provide dividends and asset liquidation preference over common shares but usually do not carry voting rights.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.