Figure 3-6 -Refer to Figure 3-6.Maxine Has an Absolute Advantage in the Absolute

question 289

Multiple Choice

Figure 3-6

-Refer to Figure 3-6.Maxine has an absolute advantage in the production of

• A) both goods and a comparative advantage in the production of pies.
• B) both goods and a comparative advantage in the production of tarts.
• C) neither good and a comparative advantage in the production of pies.
• D) neither good and a comparative advantage in the production of tarts.

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Definitions:

Upward-sloping

A term often used in economics to describe a line on a graph that shows an increase in a variable as another variable increases, such as supply or demand curves in relation to price.

Downward-sloping

A downward-sloping curve illustrates a negative relationship between two variables, commonly seen in demand curves where price and quantity demanded are inversely related.

Slope

The rate at which a line on a graph inclines or declines, indicating the relationship between two variables on a plotted curve.

Movement Along

The change in quantity demanded or supplied of a good due to a change in its price, represented graphically by a movement along a demand or supply curve.