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.

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Definitions:

Physical Strength

The ability of a person to exert force on physical objects using muscles, encompassing endurance, power, and muscle mass.

Competitive

Characterized by a strong desire to win or be the best at something, often involving comparison and rivalry between participants.

Intimate

Closely acquainted or associated, often referring to personal or private relationships.

Middle Age

A period of human adulthood that typically spans from the mid-40s to the mid-60s, marking a transition between young adulthood and old age.