Use the Following Scenario to Answer the Questions That Follow

question 77

Multiple Choice

Use the following scenario to answer the questions that follow.
Amy can produce either 5,000 pounds of cheese or 20 houses per year. Jim can produce either 5,000 pounds of cheese or 10 houses per year.
-Amy has a comparative advantage in the production of ________,and Jim has a comparative advantage in the production of ________.

• A) houses; houses
• B) houses; cheese
• C) cheese; houses
• D) both goods; houses
• E) both goods; cheese

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Definitions:

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Schenck v. United States

A landmark 1919 Supreme Court case that established the "clear and present danger" test for determining when speech protected by the First Amendment could be limited.

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