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Figure 3-3 Ice Cream Is Measured in Kilograms

question 105

Multiple Choice

Figure 3-3
Ice cream is measured in kilograms. 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 ice cream and Jerry has an absolute advantage in both goods. B) Ben has a comparative advantage in cones and Jerry has an absolute advantage in ice cream. C) Ben has a comparative advantage in ice cream and Jerry has an absolute advantage in neither good. D) Ben has a comparative advantage in ice cream and Jerry has an absolute advantage in cones.
-Refer to Figure 3-3. Which of the following is correct?


Definitions:

Tax Revenue

The income governments procure through the levy of taxes.

Consumer Surplus

The variance between the total consumers are prepared to invest in a good or service and what they end up investing.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the higher market price they actually receive.

Tax Revenue

Funds acquired by governments from taxation, employed to support public programs and fulfill government responsibilities.

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