Use the Following Scenario to Answer the Following Questions

question 144

Multiple Choice

Use the following scenario to answer the following questions:
Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,which of the following is true?

• A) Rosa has both an absolute and a comparative advantage in basketball production.
• B) Rosa has both an absolute and a comparative advantage in football production.
• C) Rosa has neither an absolute nor a comparative advantage in basketball production.
• D) Rosa has neither an absolute nor a comparative advantage in football production.
• E) Dirk has both an absolute and a comparative advantage in basketball production.

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Definitions:

Savings Account

A bank account that earns interest on the deposited funds, offering a safe way to save money for future use.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.

Savings Account

A deposit account held at a bank or financial institution that provides principal security and a modest interest rate.