Scott and Cindy Both Produce Only Pizza and Tacos

question 38

Multiple Choice

Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Based on these data,

• A)Cindy and Scott have the same comparative advantage in producing tacos.
• B)Cindy has a comparative advantage in producing tacos.
• C)neither Cindy nor Scott has a comparative advantage in producing tacos.
• D)Cindy and Scott have the same comparative advantage in producing pizzas.
• E)Scott has a comparative advantage in producing tacos.

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Definitions:

Cooperative

An organization formed by individuals to market new products. Individuals in a cooperative pool their resources together to gain an advantage in the market.

Shareholder

An investor who holds stock in a corporation, and thus is an owner of the corporation.

Leasehold Estates

Leasehold estates represent a tenant's right to occupy or use real property for a specific period of time, as defined by a lease agreement.

Possessory Interest

A legal right to occupy or control property, irrespective of ownership.