Al and Bill Are the Only Workers in a Small

question 7

Multiple Choice

Al and Bill are the only workers in a small factory that makes geegaws and doodads.Al can make 7 geegaws per hour or 21 doodads per hour.Bill can make 4 geegaws per hour or 8 doodads per hour.Assuming that neither of them finds one task more odious than the other,

• A)Al has a comparative advantage in producing geegaws and Bill has a comparative advantage in producing doodads.
• B)Bill has a comparative advantage in producing both geegaws and doodads.
• C)Al has a comparative advantage in producing both geegaws and doodads.
• D)Bill has a comparative advantage in producing geegaws and Al has a comparative advantage in producing doodads.
• E)both have a comparative advantage in producing doodads.

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Definitions:

Freshman Class

The group of students collectively beginning their first year of higher education or high school.

Standard Error

A measure of the statistical accuracy of an estimate, commonly the standard deviation of the sampling distribution of a statistic.

Population Parameter

A value that accurately represents a particular characteristic of an entire population.

Sampling Distribution

The probability distribution of a given statistic based on a large number of samples drawn from a specific population.