Table 2.5 Table 2.5 Shows the Output Per Month of Two People

question 83

Multiple Choice

Table 2.5

Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.5. Which of the following statements is true?

• A)Fred has an absolute advantage in making both products.
• B)Barney has an absolute advantage in making both products.
• C)Barney has an absolute advantage in making pogo sticks and Fred in making unicycles.
• D)Barney has an absolute advantage in making unicycles and Fred in making pogo sticks.

---

Definitions:

Limited Liability

A legal principle where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership.

Articles of Incorporation

A document filed with a state government to legally establish a corporation.

Nonprofit Corporation

A nonprofit corporation is an organization established for purposes other than generating profit, often focused on charitable, educational, religious, or scientific endeavors.

State Law

Laws that are enacted and enforced by individual states within the United States, governing matters not exclusively granted to the federal government by the Constitution.