David Takes 10 Minutes to Process a Customer,and 20 Minutes

question 138

Multiple Choice

David takes 10 minutes to process a customer,and 20 minutes to stock the shelves.Danny takes 15 minutes to process a customer,and 15 minutes to stock the shelves.Which of the following statements is true?

• A) David has an absolute advantage in performing both tasks.
• B) Danny has an absolute advantage in performing both tasks.
• C) David has a comparative advantage in processing customers but not in stocking shelves.
• D) Danny has a comparative advantage in processing customers but not in stocking shelves.
• E) Danny has a comparative advantage in processing customers and in stocking shelves.

Explain why certain productions are excluded from the GDP calculations.

Understand concepts of nominal versus real values in the context of GDP.

Calculate real and nominal GDP using given data.

Analyze the effects of international transactions on a country's GDP.

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Definitions:

Copper

A reddish-brown metal that is highly conductive to electricity and heat, extensively used in electrical wiring and plumbing.

Perfectly Competitive Market

Market with many buyers and sellers, so that no single buyer or seller has a significant impact on price.

Market Price

The current price at which an asset or service can be bought or sold in the market.

Sellers

Individuals or entities that offer goods or services for sale in the market.