(Exhibit: Determining Comparative Advantage) Eric Has a Lower Opportunity Cost

question 38

Multiple Choice

(Exhibit: Determining Comparative Advantage) Eric has a lower opportunity cost for:
$\begin{array}{|l|l|l|}\hline & \text { Opportunity Cost of 1 Bread } & \text { Opportunity Cost of } 1 \text { Cake } \\\hline \text { Eric ( } 4 \text { loaves of bread }=2 \text { cakes }) & 1 / 2 \text { of a cake } & 2 \text { loaves of bread } \\\hline \text { Daisy }(5 \text { loaves of bread }=3 \text { cakes }) & 3 / 5 \text { of a cake } & 12 / 3 \text { loaves of bread } \\\hline\end{array}$

• A) baking bread.
• B) baking a cake.
• C) neither bread nor cake.
• D) both bread and cake.

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Definitions:

Cursive

A style of handwriting where the letters are connected in a flowing manner, intended for faster writing.

Automatic Processing

Cognitive functions that are performed without conscious awareness or effort, often as a result of learning and practice.

Echoic Memory

A component of sensory memory that retains an exact copy of what we hear for a brief period, usually up to several seconds.

Reading Speed

The rate at which a person can read text, often measured in words per minute (wpm), which can be influenced by the reader's skill, the complexity of the text, and the purpose of reading.