Use the Information Below to Answer the Following Questions

question 44

Multiple Choice

Use the information below to answer the following questions.
Fact 2.4.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
-Refer to Fact 2.4.2. Which one of the following statements is true?

• A)Brenda has an absolute advantage over Agnes in the production of both goods.
• B)Agnes has a comparative advantage in the production of Y.
• C)Brenda has a comparative advantage in the production of X.
• D)Brenda will not gain from trade.
• E)Agnes will not gain from trade.

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Definitions:

Operating Departments

Divisions or units within an organization directly involved in its core business activities, responsible for producing the goods or services it offers.

Income Statements

Reports that detail the revenue, expenses, and profitability of a company over a defined accounting period, showing its financial performance.

Service Departments

Units within an organization that provide support services to other departments, rather than producing goods or services for external customers.

Generate Revenues

The process of earning income from business activities, such as sales of goods and services.