If Ana Devotes All Her Time to Making Fudge, She

question 80

Multiple Choice

If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. According to The Principle of Comparative Advantage, Ana and Leo will be able to produce more overall if:

• A)Ana specializes in fudge and Leo specializes in toffee.
• B)Leo specializes in fudge and Ana specializes in toffee.
• C)both Leo and Ana specialize in fudge.
• D)the Principle of Comparative Advantage does not hold in this example.

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Fourteen-Year Term

A fixed period of fourteen years, often referenced in legal, contractual, or tenure contexts.

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