Refer to the Table Below A)pies; Cakes
B)cakes; Pies
C)neither Pies nor Cakes; Both Pies

question 54

Multiple Choice

Refer to the table below. Based on their comparative advantage, Martha should specialize in _______ while Julia should specialize in _______. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

• A)pies; cakes
• B)cakes; pies
• C)neither pies nor cakes; both pies and cakes
• D)both pies and cakes; neither pies nor cakes

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Definitions:

Resource Endowments

These are the natural, human, and technological resources available to a country or region, crucial for economic development.

Comparative Advantage

A concept in economics that refers to a country's ability to produce goods and services at a lower opportunity cost than that of trade partners.

Domestic Opportunity Cost

The opportunity cost of producing goods domestically rather than importing them, measured by what is given up in the domestic production of other goods.

Capital-Intensive Products

Products that require a high amount of capital investment in machinery and equipment relative to labor input in their production process.