Tom and Jerry Have Two Tasks to Do All Day

question 100

Multiple Choice

Tom and Jerry have two tasks to do all day: make dishes and build fences.If Tom spends all day making dishes,he will have make 16 dishes.If he instead devotes his day to building fences,Tom will build 4 fences.If Jerry spends his day making dishes,he will make 14 dishes; if he spends the day building fences,he will build 7 fences.Jerry has a comparative advantage in:

• A) dish production because he has the lower opportunity cost of a dishes.
• B) dish production because he has the higher opportunity cost of a dishes.
• C) fence production because he has the lower opportunity cost of a fence.
• D) fence production because he has the higher opportunity cost of a fence.

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Definitions:

Schedule C

A section of the IRS Form 1040 that allows self-employed individuals to report their business income and expenses.

Form SE

A tax form used by self-employed individuals in the United States to calculate the tax due on their net earnings from self-employment.

Early Withdrawal

Withdrawing funds from a retirement account or investment before a specified age, often incurring penalties and additional taxes.

Form 1099-INT

A tax form used in the United States to report interest income from banks and other financial institutions.