Table 3-3 -Refer to Table 3-3.What Does Each of the Two Producers

question 61

Multiple Choice

Table 3-3

-Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in

• A)Kevin has a comparative advantage in sweaters, and Amy has an absolute advantage in neither good.
• B)Kevin has a comparative advantage in blankets, and Amy has an absolute advantage in sweaters.
• C)Kevin has a comparative advantage in sweaters, and Amy has an absolute advantage in blankets.
• D)Kevin has a comparative advantage in blankets, and Amy has an absolute advantage in both goods.

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Definitions:

Employment

The condition of having paid work or the number of people who are currently employed in the economy.

Monopoly

An economic condition where a single company or entity has exclusive control over a particular industry or product, hence limiting competition.

Monopsony

A market situation where there is only one buyer for many sellers, giving the buyer significant power over prices.

Resource Markets

Resource markets are venues where resources or factors of production (such as labor, capital, and raw materials) are bought and sold, influencing the allocation and distribution of resources in an economy.