If Wendy Can Produce More of All Goods Than Tommy

question 43

Multiple Choice

If Wendy can produce more of all goods than Tommy in an hour,then

• A) Wendy has an absolute advantage in all goods.
• B) Wendy does not need to trade with Tommy in order to achieve the gains from trade.
• C) Wendy has a comparative advantage in all goods.
• D) Tommy has an absolute advantage in all goods.
• E) Only Tommy but not Wendy can benefit from trade between the two of them.

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Definitions:

General Population

The total group of individuals in a specific geographic area or from whom data can be collected.

Clear And Convincing Proof

A standard of evidence requiring a high degree of certainty to persuade that a proposition is significantly more likely to be true than not.

Total Certainty

The absolute assurance or conviction about the truth or accuracy of something.

Reasonable Doubt

A standard of proof in criminal cases requiring the prosecutor to convince the jury of the defendant's guilt to a moral certainty that leaves no room for reasonable doubt.