Table 191 -Refer to Table 19

question 79

Multiple Choice

Table 19.1
$$\begin{array} { l l l } & \begin{array} {l } \text { Computers } \\\text { (units) }\end{array} & \begin{array} { l } \text { Shoes } \\\text { (pairs) }\end{array} \\\text { Aharoni } & 600 & 300 \\\text { Kalinga } & 200 & 400\end{array}$$
-Refer to Table 19.1.Suppose Aharoni and Kalinga are the only two countries in the world and they produce computers and shoes.Aharoni has 100 workers,and Kalinga has 200 workers.The table above shows the per-day production possibilities for each country.Aharoni has

• A)an absolute advantage in computers only.
• B)an absolute advantage in shoes only.
• C)a comparative advantage in computers.
• D)a comparative advantage in shoes.
• E)neither an absolute advantage nor a comparative advantage in computers.

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Definitions:

Misallocation Of Resources

The inefficient distribution or use of resources in an economy, leading to outcomes where goods or services are not produced at their highest valued use.

Free-Market Intent

The overarching aim or philosophy of allowing market forces of supply and demand to operate with minimal government intervention.

Agricultural Policy

A set of laws and regulations implemented by governments to stabilize agricultural markets, support farm income, and encourage agricultural production.

Freedom To Farm Act

Legislation enacted to give farmers more flexibility in the planting choices of crops, aiming to make American agriculture more market-driven.