In One Week,Mohammed Can Knit 5 Sweaters or Bake 240

question 95

Multiple Choice

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Which of the following is correct?

• A)Mohammed has an absolute and comparative advantage in both tasks.
• B)Aisha has an absolute and comparative advantage in both tasks.
• C)Mohammed has an absolute advantage in both tasks and a comparative advantage in knitting sweaters.
• D)Aisha has an absolute advantage in both tasks and a comparative advantage in knitting sweaters.
• E)Mohammed has an absolute advantage in both tasks and a comparative advantage in baking cookies.

---

Definitions:

Interest Rate

Lenders impose a charge, as a percentage of the principal, on borrowers for the use of their assets.

Present Value

The value today of a future money sum or sequence of cash flows, based on a specific interest rate.

Interest Rate

The cost of borrowing money or the return on savings, usually expressed as a percentage.

Interest Rate

The percent of principal charged by the lender for the use of its money or the rate earned on deposited funds.