Scott and Cindy Both Produce Only Pizza and Tacos

question 258

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

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Definitions:

Disposition

The act of transferring or disposing of an asset or property, or the manner in which someone is inclined to behave or feel.

Collateral

Assets pledged by a borrower to secure a loan or other credit, which the lender can seize if the borrower defaults.

PMSI

Purchase Money Security Interest, a legal claim that allows a lender to repossess or foreclose on property if the borrower defaults, specifically when the loan was used to purchase the property.

Priority Rule

A principle in law that determines the precedence of claims, rights, or interests in order to resolve conflicts between parties.