Which of the Following Describes Comparative Advantage

question 45

Multiple Choice

Which of the following describes comparative advantage?

• A)Firm A can produce a good at a cost of $3 a unit,and Firm B can produce the same good at a cost of $4 a unit.
• B)Jane can type 50 words per minute,and Joe can type 60 words per minute.
• C)Firm A can produce 4 boxes of cereal in a day,and Firm B can produce 5 boxes of cereal in a day.
• D)To produce a basket of wheat,Farmer John must give up growing 2 baskets of corn,whereas Farmer Ben must give up 3 baskets of corn to produce a basket of wheat.
• E)Bill can read one book in a week,but it takes Jeannie 10 days to read the same book.

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Definitions:

Insight

Deep understanding or realization that comes from a detailed analysis of data, information, or circumstances, often leading to new perspectives or solutions.

Obvious Observation

A statement or fact that is clear, self-evident, or easily understood without the need for detailed explanation.

Potential Solution

A possible method or way to address, solve, or improve a specific problem or challenge.

Implementation Stage

The phase in a project or plan where strategies and ideas are put into action.