If Luke Can Bake Bread at a Lower Opportunity Cost

question 140

Multiple Choice

If Luke can bake bread at a lower opportunity cost than Jason, and Jason can produce paintings at a lower opportunity cost than Luke, it follows that

• A)Luke has a comparative advantage in paintings and Jason has a comparative advantage in baking bread.
• B)Both Luke and Jason have a comparative advantage in baking bread.
• C)Both Luke and Jason have a comparative disadvantage in producing paintings.
• D)Luke has a comparative advantage in baking bread and Jason has a comparative advantage in producing paintings.

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Definitions:

Formal-Operations

A stage in Piaget's theory of cognitive development, typically beginning around age 12, where individuals start to use abstract and logical thinking.

Concrete-Operations

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events.

Preoperational Child

Refers to the stage in Piaget’s theory of cognitive development (ages 2-7) where children begin to use language and think symbolically, but their thinking is still intuitive and egocentric.

Conservation

The principle of saving natural resources to prevent depletion and harm to the environment.