Scenario: There Are Two Workers in a Factory That Produces

question 65

Multiple Choice

Scenario: There are two workers in a factory that produces two goods, Good X and Good Y. Worker 1 adds a value of $200 per hour in the production of Good X and a value of $100 per hour in the production of Good Y. Worker 2 adds a value of $125 per hour in the production of Good X and a value of $87.50 per hour in the production of Good Y.
-Refer to the scenario above.Which of the following is true in this case?

• A) Worker 1 has a comparative advantage in the production of Good X.
• B) Worker 2 has a comparative advantage in the production of Good X.
• C) Worker 1 has an absolute advantage only in the production of Good Y.
• D) Worker 2 has an absolute advantage in the production of both goods.

---

Definitions:

Cash Discount

A reduction in the price of goods or services offered by the seller to the buyer for immediate payment or payment within a specified time frame.

Partial Payment

A payment made that is less than the total amount due for a bill or debt.

Pet Food

Specially formulated food intended for consumption by pets, such as dogs and cats, designed to meet their nutritional needs.

Cash Discount

A deduction from the invoice price that a seller allows a buyer to encourage prompt payment.