The Following Question(s)relate(s)to the Material in the Addendum to Chapter

question 36

Multiple Choice

The following question(s) relate(s) to the material in the addendum to Chapter 2.Use the production possibilities data for Lebos and Slavia below to answer the question(s) .
Table 2-4

-Refer to Table 2-4.Which of the following is correct?

• A)Lebos has the comparative advantage in both goods.
• B)Slavia has the comparative advantage in food.
• C)Lebos has the comparative advantage in food.
• D)Lebos has the comparative advantage in clothing.

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Definitions:

Inputs

The resources, materials, and labor that are used in the production process to create goods and services.

Technology

The application of scientific knowledge for practical purposes, especially in industry and commerce.

Production Function

An equation that describes the relationship between input factors (like labor and capital) and the output of goods or services.

Outboard Motor

A propulsion system for boats that includes an engine, gearbox, and propeller or jet drive, and is mounted externally at the stern (rear) of the vessel.