The Figures Below Depict the Production Possibilities Frontiers (PPFs) for Two

question 124

Multiple Choice

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the questions that follow.

-Which statement best describes the absolute advantage shown in the figures?

• A) Pam has an absolute advantage in the production of both.
• B) Jim has an absolute advantage in the production of both.
• C) Jim has an absolute advantage in the production of pizzas, and Pam has an absolute advantage in the production of stromboli.
• D) Pam has an absolute advantage in the production of pizzas, and Jim has an absolute advantage in the production of stromboli.
• E) They both have an absolute advantage in the production of stromboli.

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Definitions:

Human Resources

The abilities, skills, and health of human beings that contribute to the production of both current and future output. Investment in training and education can increase the supply of human resources.

Physical Resources

Tangible assets used in the production or delivery of goods and services, such as machinery, buildings, and raw materials.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.