Olivia Bakes Cakes and Andrew Grows Corn

question 11

Multiple Choice

Olivia bakes cakes and Andrew grows corn.Olivia and Andrew both like to eat cake and eat corn.In which of the following cases is it impossible for both Olivia and Andrew to benefit from trade?

• A)Olivia cannot grow corn and Andrew cannot bake cakes.
• B)Olivia is better than Andrew at baking cakes and Andrew is better than Olivia at growing corn.
• C)Olivia is better than Andrew at baking cakes and at growing corn.
• D)Both Olivia and Andrew can benefit from trade in all of the above cases.

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Definitions:

Continuing Guarantee

A provision in a guarantee allowing the creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.

Legal Claim

A formal assertion by a plaintiff that they are entitled to legal remedy or compensation from a defendant.

Personal Property Security Act

Legislation that provides rules for secured transactions involving personal property, ensuring interests are protected and prioritized.

Chattel Security

A type of security interest granting a lender the right to repossess personal property used as collateral if the borrower defaults.