Tom and Jerry Have Two Tasks to Do All Day

question 91

Multiple Choice

Tom and Jerry have two tasks to do all day: set traps and build bombs.If Tom spends all day setting traps,he will have set 16 traps.If he instead devotes his day to building bombs,Tom will build 4 bombs.If Jerry spends his day setting traps,he will set 14 traps;if he spends the day building bombs,he will build 7 bombs.After looking at the production possibilities for both Tom and Jerry,we can surmise that:

• A)Tom has the absolute advantage in the production of both traps and bombs.
• B)Jerry has the absolute advantage in the production of both traps and bombs.
• C)Tom has the absolute advantage in the production of traps and Jerry has the absolute advantage in bomb production.
• D)Tom has the absolute advantage in the production of bombs and Jerry has the absolute advantage in trap production.

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Definitions:

Purchase-Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property financed through debt if the borrower defaults, specifically relating to the item purchased.

After-Acquired Property

Refers to assets or property acquired by a debtor after the execution of a loan agreement which may subsequently become subject to the lender's security interest.

Buyer In Ordinary Course Of Business

Describes a purchaser who buys goods in good faith and without knowledge that the sale violates another party's ownership rights or interests.

Instrument

Any writing that serves as evidence of the right to payment of money.