If Sam Can Chop More Carrots Per Minute Than Joe

question 144

Multiple Choice

If Sam can chop more carrots per minute than Joe can, then _____

• A) Joe has an absolute advantage in carrot chopping.
• B) Joe must have a comparative advantage in carrot chopping.
• C) Sam has an absolute advantage in carrot chopping.
• D) Sam must have a comparative advantage in carrot chopping.
• E) we can conclude nothing about absolute advantage.

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Definitions:

Marginal Efficiency

Marginal efficiency relates to the additional utility or benefit gained from consuming or producing one more unit of a good or service.

Inventory Investment

The purchase of goods that are not sold immediately but are held for future sales, contributing to a company's assets.

Inventory

The total amount of goods and materials held in stock by a business or company.

Gross Investment

The total amount of money spent on acquiring, upgrading, or maintaining physical assets before depreciation is taken into account.