Suppose That a Worker in Country a Can Make Either

question 48

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.The workers in Country A should specialize in __________________ because they possess the ___________________ in the production of that good.

• A) bananas; comparative advantage
• B) tomatoes; comparative advantage
• C) bananas; absolute advantage
• D) tomatoes; absolute advantage

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Definitions:

Uniform Commercial Code

A set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Common Law

Law that is derived from judicial decisions rather than statutes, emphasizing the role of courts in interpreting law.

Judges' Decisions

Rulings made by judges in court cases that resolve disputes and set legal precedents.

Stare Decisis

A common law doctrine under which judges are obligated to follow the precedents established in prior decisions within their jurisdictions.