Use the Information Below to Answer the Following Questions

question 37

Multiple Choice

Use the information below to answer the following questions.
Fact 2.4.1
In one hour, Sue can produce 50 caps or 10 jackets, and Tessa can produce 70 caps or 7 jackets.
-Refer to Fact 2.4.1. ________ has a comparative advantage in producing caps. If Sue and Tessa each specialize in producing the good in which they have a comparative advantage and trade 1 jacket for 7 caps, ________.

• A)Sue; Tessa gains but Sue loses
• B)Tessa; Sue loses but Tessa gains
• C)Sue; both Sue and Tessa gain
• D)Tessa; both Sue and Tessa gain
• E)Tessa; Tessa loses but Sue gains

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Definitions:

Fractions

Numerical quantities that represent a part of a whole, commonly expressed with a numerator and a denominator.

Lowest Terms

The most basic version of a fraction, in which both the top and bottom numbers have been minimized to the lowest possible figures.

Pasta Sauce

A flavored liquid or semi-liquid mixture served with pasta, typically made from ingredients such as tomatoes, herbs, and spices.

Chopped Onions

Onions that have been cut into small pieces, commonly used as a cooking ingredient.