Table 3.1 -Table 3.1 Illustrates Willy and Blythe's Hourly Production for Apples

question 34

Multiple Choice

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

• A) Willy has an absolute advantage in producing apples but not carrots.
• B) Willy has an absolute advantage in producing carrots but not apples.
• C) Willy has an absolute advantage in producing both goods.
• D) Willy does not have an absolute advantage in producing either good.

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Definitions:

Income

The earnings acquired, often periodically, for performing job duties or from investment gains.

Net Exports

The value of a country's total exports minus its total imports, representing the net amount of goods and services being traded with other countries.

GDP Deflator

An indicator used to determine the price levels of newly produced domestic final goods and services, assisting in the conversion of nominal GDP to real GDP.

Real GDP

Gross Domestic Product corrected for inflation, giving a truer depiction of the size of an economy and its growth trajectory over time.