Table 2-18 Table 2-18 Shows the Output Per Week of Week

question 17

Multiple Choice

Table 2-18
Table 2-18 shows the output per week of two people, Minnie and Mickey. They can either devote their time to making hats or making umbrellas.
-Refer to Table 2-18. Which of the following statements is true?

• A) Minnie has a comparative advantage in making both products.
• B) Mickey has a comparative advantage in making both products.
• C) Minnie has a comparative advantage in making hats and Mickey in making umbrellas.
• D) Mickey has a comparative advantage in making hats and Minnie in making umbrellas.

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Definitions:

Products And Methods

The goods produced and the techniques used in the creation of those goods, reflecting the efficiency and innovations in the manufacturing or service process.

Replacing Old

involves updating or substituting older products, methods, or technologies with newer ones to improve efficiency, functionality, or relevance.

Outward Shift

An increase in a country's production possibility frontier, indicating an expansion in its capacity to produce goods and services.

Production Possibilities Curve

An illustrative chart depicting the optimal output possibilities of two different goods or services that an economy can reach with full and efficient use of all available resources.