Exhibit 28-2 Karl Can Produce Either 10 Tons of Oranges

question 139

Multiple Choice

Exhibit 28-2 Karl can produce either 10 tons of oranges or 5 tons of apples in a year,while Adam can produce either 5 tons of oranges or 10 tons of apples.
Refer to Exhibit 28-2.Which of the following is true?

• A) Adam has an absolute advantage in oranges and a comparative advantage in apples.
• B) Karl has an absolute advantage in oranges and a comparative advantage in oranges.
• C) Karl has an absolute advantage in both apples and oranges.
• D) Karl has an absolute advantage and a comparative advantage in apples.

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Definitions:

Misrepresents Age

The act of intentionally providing a false age or birth date, typically to bypass age restrictions or for other benefits.

Disaffirm

Disaffirm refers to the legal act of renouncing or nullifying a contract or agreement, especially employed when one party to the agreement is not capable of fully understanding their obligations due to age or mental state.

Good Faith

Acting with honesty, fairness, and without deceit or fraud in transactions or interactions.

Emancipated

Refers to a legal process through which a minor gains legal independence from their parents or guardians before reaching adulthood.