Consider the Following Scenario to Answer the Questions That Follow

question 91

Multiple Choice

Consider the following scenario to answer the questions that follow.
Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake one loaf of bread and one hour to make one pie. Joey takes four hours to bake one loaf of bread and four hours to make one pie.
-If Rachel and Joey decide to specialize in order to maximize their combined output,who should produce what?

• A) Joey should specialize in making pies because he has an absolute advantage.
• B) Rachel should specialize in making pies and Joey should specialize in making bread.
• C) Joey should specialize in making pies and Rachel should specialize in making bread.
• D) Rachel should specialize in making bread and pies because she has a comparative advantage in both.
• E) Rachel should not specialize because she is better at producing both.

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Definitions:

McDonaldization

The process by which the principles of the fast-food restaurant are coming to dominate more sectors of American society as well as the rest of the world, leading to increased efficiency, predictability, calculability, and control through the substitution of non-human for human technology.

Irrationality of Rationality

A concept suggesting that rational systems or practices can lead to outcomes that are irrational or harmful to societal well-being.

Unintended Consequences

Outcomes that are not foreseen or intended by a purposeful action, which can be positive, negative, or inconsequential.

Cultural Hybridization

The process by which cultures interact, blend, and create new cultural forms, leading to a mixture of cultural expressions and practices.