Figure 3-3 Ice Cream Is Measured in Kilograms

question 116

Multiple Choice

Figure 3-3
Ice cream is measured in kilograms.
-Refer to Figure 3-3. Which of the following is correct?

• A)Ben has a comparative advantage in cones and Jerry has a comparative advantage in ice cream.
• B)Ben has a comparative advantage in ice cream and Jerry has a comparative advantage in cones.
• C)Ben has a comparative advantage in neither good and Jerry has a comparative advantage in both goods.
• D)Ben has a comparative advantage in both goods and Jerry has a comparative advantage in neither good.

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Definitions:

Variable

A measure that can change from time to time or from observation to observation.

Causality

Describes a relationship where one event (the cause) directly affects the outcome of another event (the effect).

Normative Question

Involves value judgments about what ought to be and discusses what should be done based on subjective criteria.

Regressive Nature

Regressive nature typically refers to a situation or policy that disproportionately affects those with lower incomes more adversely than those with higher incomes.