Use the Following Scenario to Answer the Following Questions

question 16

Multiple Choice

Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,Karl has

• A) a comparative advantage in producing cars,but not trucks.
• B) a comparative advantage in producing trucks,but not cars.
• C) a comparative advantage in producing both goods.
• D) a comparative advantage in producing neither good.
• E) no absolute advantage.

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Definitions:

Fast Food

Quick-service food items, usually part of a chain or franchise, that are prepared and served rapidly.

On-demand Economy

An economic model driven by technology where goods and services are delivered on demand to consumers via digital marketplaces and apps.

Independent Contractors

Individuals who offer their services on a freelance basis and are not considered employees of the companies with which they work, often providing their tools and deciding their work hours.

Highly Dependent

Describes a state or condition where there is a strong reliance or need for something or someone for support or survival.