Use the Following Scenario to Answer the Following Questions

question 93

Multiple Choice

Use the following scenario to answer the following questions:
Raven and Drew produce baseballs and golf balls.Raven can produce six baseballs per hour or four golf balls per hour.Drew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,Raven has

• A) an absolute advantage in producing baseballs,but not golf balls.
• B) an absolute advantage in producing golf balls,but not baseballs.
• C) an absolute advantage in producing both goods.
• D) an absolute advantage in producing neither good.
• E) no comparative advantage.

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Definitions:

Immediate Electronic Execution

A system or process that allows financial transactions to be conducted and completed instantaneously via electronic platforms.

Price Improvement

The potential for a trade to be executed at a better price than what is currently quoted publicly, offering a benefit to the buyer or seller.

Private Equity

Investments in companies whose shares are not publicly traded in a stock market.

Investment Banking

A sector of the banking industry that helps individuals and organizations raise capital and provides financial consultancy services.