Use the Following Scenario to Answer the Next Four Questions

question 113

Multiple Choice

Use the following scenario to answer the next four questions:
RayRay and Andrew produce baseballs and golf balls. RayRay can produce six baseballs per hour or four golf balls per hour. Andrew can produce three baseballs per hour or one golf ball per hour.
-Countries engaged in international trade tend to specialize in production based on:

• A) relative levels of gross domestic product (GDP).
• B) comparative advantage.
• C) relative exchange rates.
• D) relative inflation rates.
• E) relative unemployment rates.

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Definitions:

Denominator

The bottom number in a fraction that shows into how many equal parts the whole is divided.

Numerator

The number above the division line in a fraction. The numerator is also known as the dividend.

Fraction

A numerical quantity that is not a whole number, representing a part of a whole.

Evaluate

To calculate the value of an expression or assess the significance of something in a given context.