Table 3-1 Assume That Sardi and Tinaka Can Switch Between Producing Corn

question 109

Multiple Choice

Table 3-1
Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate.

-Refer to Table 3-1.Sardi has an absolute advantage in the production of

• A) corn and Tinaka has an absolute advantage in the production of pork.
• B) pork and Tinaka has an absolute advantage in the production of corn.
• C) both goods and Tinaka has an absolute advantage in the production of neither good.
• D) neither good and Tinaka has an absolute advantage in the production of both goods.

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Definitions:

Annual Coupon Bond

A bond that pays interest (coupon) to bondholders once a year until maturity, when the principal amount is repaid.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Standard Deviation

A measure of the dispersion or variability in a set of data or probability distribution.

Returns

The gains or losses from an investment over a specific period, usually expressed as a percentage.