Two Individuals Engage in the Same Two Productive Activities

question 79

Multiple Choice

Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity?

• A) One individual's production possibilities frontier is steeper than the other individual's production possibilities frontier.
• B) One individual is faster at both activities than the other individual.
• C) One individual's opportunity costs are the same as the other individual's opportunity costs.
• D) None of the above is correct; one of the two individuals always will have a comparative advantage in at least one of the two activities.

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Definitions:

Corporate Affairs

The activities, strategies, and management decisions related to the operation and governance of a corporation.

Director

An individual appointed or elected to sit on a corporate board, responsible for making significant business decisions and overseeing the company's affairs.

Uniform Partnership Act

A standardized legal framework adopted by many states to govern the operation and regulation of partnerships.

Rights Of Partners

The entitlements or privileges granted to members of a partnership, including profit sharing, participation in decision-making, and access to business records.