Suppose That Opportunity Costs Are Constant and That Fred Can

question 117

Multiple Choice

Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can produce a maximum of eight pies or two cakes in a day. Ethel has an comparative advantage in the production of

• A) cakes.
• B) pies.
• C) both cakes and pies.
• D) neither cakes nor pies.

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Definitions:

Neuroticism

A personality trait characterized by moodiness, anxiety, and emotional instability.

Uncertainty And Ambiguity

Situations or conditions where information is incomplete, leading to unclear paths or outcomes.

Extraversion

A personality trait typified by sociability, talkativeness, assertiveness, and excitability; extraverts draw energy from interacting with others.

Agreeableness

A personality trait characterized by warmth, friendliness, and compassion towards others, one of the dimensions of the Big Five personality traits.