Suppose Workers in Freecia Can Produce Two Bushels of Rice

question 63

Multiple Choice

Suppose workers in Freecia can produce two bushels of rice with the same amount of effort it takes them to produce one memory chip.Workers in Warmia can produce five bushels of rice with the same effort it takes them to produce two memory chips.Which of the following must be true?

• A) Warmia has a comparative advantage in producing memory chips.
• B) Warmia has an absolute advantage in producing memory chips.
• C) Freecia has a comparative advantage in producing memory chips.
• D) Freecia has an absolute advantage in producing memory chips.

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Definitions:

Defective

A term used to describe something that is imperfect or lacking in some component, making it not fully functional.

Staples

Metal wire or plastic pieces used to bind materials together, typically papers or the edges of wounds in medical suturing.

Central Route

A method of persuasion that involves careful and thoughtful consideration of the arguments presented, leading to lasting attitude change.

Persuasion

The act of convincing someone to do or believe something through reasoning or the use of another method.