Shawn Can Produce Donuts at a Lower Opportunity Cost Than

question 103

Multiple Choice

Shawn can produce donuts at a lower opportunity cost than Sue.Who has an absolute or a comparative advantage in the production of donuts

• A)Shawn has a comparative advantage.
• B)Sue has a comparative advantage.
• C)Shawn has an absolute advantage.
• D)Sue has an absolute advantage.

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Definitions:

Real GDP

The assessment of economic production's worth, corrected for variations in prices due to inflation or deflation, revealing the actual volume of goods and services generated.

Estimated GDP

An approximation of the total value of goods and services produced within a country's boundaries in a specified time period, before exact figures are available.

Output of Goods

The total amount of goods produced by a company, sector, or economy over a specific period.

Services Produced

Activities or benefits provided by businesses or individuals that are intangible and do not result in ownership of physical goods.