Table 3-4 Brenda and Eric Run a Business That Involves Setting Up

question 100

Multiple Choice

Table 3-4
Brenda and Eric run a business that involves setting up and testing computers. The following table applies.

-Refer to Table 3-4.Which of the following statements is correct?

• A)Brenda has an absolute advantage, and Eric has a comparative advantage, in setting up computers.
• B)Eric has an absolute advantage, and Brenda has a comparative advantage, in setting up computers.
• C)Brenda has an absolute advantage and a comparative advantage in setting up computers.
• D)Eric has an absolute advantage and a comparative advantage in setting up computers.

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Definitions:

Share

An individual unit of ownership in a company or financial asset that represents a proportion of the company's capital.

Play

Engaging in activities for enjoyment and recreation rather than a serious or practical purpose, especially by children.

Puberty

The period of adolescence when a person begins to develop secondary sexual traits and reproductive functions.

Physical Changes

Alterations in a substance that do not affect its chemical composition, such as changes in shape, size, or state.