Suppose That Opportunity Costs Are Constant and That Fred Can

question 229

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. Fred 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:

Daily Hassles

Minor everyday problems or annoyances that individuals face, which can accumulate and impact mental health and well-being.

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a traumatic event, characterized by flashbacks, nightmares, and severe anxiety.

Cataclysmic Events

Massive and sudden disasters or occurrences that cause significant changes to the Earth or societal structures.

Prolonged Stress Response

An extended activation of the body's stress response systems, which can negatively affect health over time.