If Shawn Can Produce More Donuts in One Day Than

question 16

Multiple Choice

If Shawn can produce more donuts in one day than Sue can produce in one day, then

• A) Shawn has a comparative advantage in the production of donuts.
• B) Sue has a comparative advantage in the production of donuts.
• C) Shawn has an absolute advantage in the production of donuts.
• D) Shawn should produce donuts and Sue should spend her time on a different activity.

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Definitions:

Lockout

Management’s version of a strike, wherein a work site is closed so that employees cannot go to work.

Mediation

A method of outside resolution of labor and management differences in which the third party’s role is to suggest or propose a solution to the problem.