Use the Following Scenario to Answer the Following Questions

question 154

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,which of the following is true?

• A) Drew has an absolute advantage in producing baseballs,but not golf balls.
• B) Drew has an absolute advantage in producing golf balls,but not baseballs.
• C) Drew has an absolute advantage in producing both goods.
• D) Drew has an absolute advantage in producing neither good.
• E) Raven has a comparative advantage in producing both goods.

---

Definitions:

Formula

A concise way of expressing information symbolically, as in a mathematical or chemical formula.

Perfect Substitute

Goods or services that can be used in place of each other with no loss of utility by the consumer.

Indifference Curve

Represents combinations of two goods that provide the same level of satisfaction to a consumer.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, representing equal levels of utility or satisfaction.