Use the Following Scenario to Answer the Next Eight Questions

question 45

Multiple Choice

Use the following scenario to answer the next eight questions:
Karl and Pete produce cars and trucks. Karl can produce 10 cars per hour or 5 trucks per hour. Pete can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,which of the following is true?

• A) Karl has an absolute advantage in producing cars but not trucks.
• B) Karl has an absolute advantage in producing trucks but not cars.
• C) Karl has an absolute advantage in producing both goods.
• D) Karl has an absolute advantage in producing neither good.
• E) Karl does not have any comparative advantage.

---

Definitions:

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over others, often leading to prejudice and discrimination.

Prejudice and Discrimination

Prejudice and discrimination involve unfair treatment or negative attitudes towards individuals based on their membership in a particular group, often rooted in stereotypes.

Scapegoat Effect

Blaming a person or group for the wrongdoings, mistakes, or faults of others, often as a way of distracting from one's own failures.

Implicit Prejudice

Unconscious biases or attitudes toward people or associate stereotypes with them without conscious knowledge.