Table 3-9 Barb and Jim Run a Business That Sets Up and Up

question 8

Multiple Choice

Table 3-9
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.

-Refer to Table 3-9.Barb has an absolute advantage in

• A) both setting up and testing computers and a comparative advantage in setting up computers.
• B) both setting up and testing computers and a comparative advantage in testing computers.
• C) neither setting up nor testing computers and a comparative advantage in setting up computers.
• D) neither setting up nor testing computers and a comparative advantage in testing computers.

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Definitions:

Premises

Statements or propositions that are taken as true and used as the basis for an argument leading to a conclusion.

Transitivity Relationship

A principle in mathematics and logic where if relation holds between a and b, and between b and c, it also holds between a and c.

Valid Inference

A logical conclusion drawn from premises known or assumed to be true.

Ominous Results

Findings or outcomes that are perceived as threatening or indicative of future negative events.