Table 2.5 Table 2.5 Shows the Output Per Month of Two People

question 74

Multiple Choice

Table 2.5

Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.5. Which of the following statements is true?

• A)Fred has a comparative advantage in making both products.
• B)Barney has a comparative advantage in making both products.
• C)Barney has a comparative advantage in making pogo sticks and Fred in making unicycles.
• D)Barney has a comparative advantage in making unicycles and Fred in making pogo sticks.

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Definitions:

Medicaid

A healthcare program for low-income individuals and families in the United States, funded jointly by the state and federal government.

Fixed Costs

Costs that remain constant regardless of the level of production or services provided by a company.

Health Savings Accounts (HSAs)

are tax-advantaged accounts that individuals can use to save and pay for qualified health expenses, often linked with high-deductible health plans.

Qualified Medical Expenses

Out-of-pocket costs for healthcare that are tax-deductible under certain conditions, including diagnoses, treatments, and preventative care.