Suppose a Producer Requires a Smaller Quantity of Inputs to Produce

question 193

Multiple Choice

Suppose a producer requires a smaller quantity of inputs to produce carrots than to produce onions. Is this information sufficient to determine in which good the producer has a comparative advantage?

• A) Yes, the producer has a comparative advantage in carrots.
• B) Yes, the producer has a comparative advantage in onions.
• C) No, because information about the costs of inputs is missing.
• D) No, because information about other producers is missing.

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Definitions:

Prosocial

relates to behavior that is intended to benefit others, including acts of kindness, sharing, and cooperative actions.

Charitable

Describes actions or organizations that are dedicated to helping those in need, often through donations or volunteer work.

Conscientious

Describes a person or behavior that is guided by or showing a desire to do what is right, typically characterized by carefulness and diligence.

Sociable

The characteristic of enjoying being with people and engaging in friendly interactions.